Saving half your income is no easy task, and it can be even more hard if you are single. It is possible though to save this amount of money. It might take some extra work, but one day you may be able to reach the awesome goal of saving 50% or more of your income.
There are many different reasons for why you might want to live off half your income and save the rest:
- You want to save for retirement. Maybe you want to retire early so you want a head start now.
- You are saving for an emergency fund.
- You are saving for a vacation and perhaps even a trip around the world.
- You want to quit your job but want to save money first.
- You are planning on starting a family and want to get into a good habit now.
Pay yourself first.
Sometimes you just have to force yourself to save. Paying yourself first can force that. This method works for many because you are leftover with less money each month which can make you more frugal and think a little bit more hard about how you are saving your money.
Many banks allow you to pay yourself first. They will sometimes take money out of each of your paychecks and automatically transfer it to your savings account, which can make it very easy to save money without really having to even think.
Cut your budget.
If your spending is out of control, then you need to take a look at your budget and see what needs to change. Take a look at your food spending, your entertainment spending, your rent or mortgage, your insurance policies, your TV bill, your cell phone, and more. There is probably something you can cut and/or lower.
I recently spent maybe 15 minutes on the phone altogether and I was able to shave off around $60 of my monthly bills. This is a good amount of savings especially when you think about how much that is over a year long period!
Increase your income.
The other area you may need to look into if you are wanting to live on less than half of your income is increasing your income. Yes, this is possible. You may have to find a higher paying job, start a part-time job, start your own side hustle, sell things around your home and more. Whatever you do, increasing your income can really help you save more of your income.
How much money do you live off of? Could you lower that at all?
Image via Flickr by peddhapati