|Banana Republic Dress (similar)/ Ann Taylor Tank (similar)/ Banana Republic Shoes (similar)|
Today is also payday, which is always a welcomed day in my book. It means that bills will be paid, food can be bought, electricity and cable will remain on, and if there is enough left over, it can mean a trip to J.Crew.
Payday also gives me another opportunity to meet my financial goal for 2012 - save more and spend less.
The other week I told you about my "No Spend Day" challenge. To update you on the first couple weeks of this challenge, I successfully did not spend any money the first week of the challenge, managed to spend money every single day last week, and then made up for it by not spending any money two days this week, so I am back on track. I know I can do this.
I also recently stumbled upon the balanced money formula on the Get Rich Slowly blog which might just be the key to balancing what I want with what I need and saving more throughout the year (please note, this may not be the right strategy for everybody and I am in no way a financial expert). Lucky for me, the formula is simple: take my income after taxes and split it into three categories - needs, wants, and savings. Ideally no more than 50 percent of my paycheck should be spend on needs, at least 20 percent should be devoted to saving, and 30 percent can be spent on wants.
For those of us who are visual learners, this is what this looks like:
- Needs are things that must be payed no matter what: housing, food, utilities, transportation costs, insurance.
- Wants are everything else: cable television, restaurant meals, concert tickets, comic books, clothing beyond the basics, etc.
- Saving comes last in this plan. Everything left after taking care of Wants and Needs is set aside for the future.
Hope you all have a Happy Thursday! XO