Photo: Marshall Astor/Flickr
Good Morning Dinks. Today we are discussing how much money we are saving on a daily, weekly, monthly, and yearly basis. It seems like over the past 30-days I have spent a lot of money.I travelled to New York City for the women’s blogging conference BlogHer’12 and I finally booked my aeroplane ticket and hotel room for the financial blogger conference FinCon’12. Lately it seems like everywhere I turn I am paying a bill in some form or another.
Let me ask you a question Dinks…How much money did you spend yesterday? Now ask yourself how much of that money could you have saved?
Many people feel that they should save a certain percentage of their after-tax income; a general rule of thumb is that we should be saving 20-per cent of our annual after-tax income. If this is your personal savings strategy it doesn’t really matter whether you choose to save on a weekly, biweekly, or monthly basis. All that matters is how much money you have saved at the end of the year. What percentage of your income do you save each year?
Some people don’t include their personal savings into their monthly budget because some people can’t afford to save money on a regular basis. If your budget is tight and you are earning just enough money to make sure that your bills are paid on time saving money on a regular basis may just not fit your lifestyle. Some people choose not to save money on a regular basis throughout the year, but instead they save their annual bonus once a year. If you received an annual bonus last year did you spend or save it?
I don’t know about you but sometimes my daily personal spending can get very out of control. I am the queen of impulse purchases. Sometimes I will buy a snack just because I feel like it, not because I am actually hungry. Sometimes I buy my lunch because I am craving a particular food, even though I brought my lunch to work that day. Sometimes I stop by a bookstore and I buy a magazine or a new book just because I am in the mood to go shopping. Every Friday I add up all of my personal spending purchases and although I would love to say that I always stay within my budget of $20 per week, I honestly can’t say that it happens a lot. I guess it’s time for some self control. What was your last impulse purchase?
Some people don’t save a pre-determined amount of money; some people just save whatever money they have left over after all of their bills are paid. As a financial professional this particular savings strategy makes me cringe, but on the other hand I always say that some savings are better than no savings at all. The problem with saving leftover money is that there is always something else we can buy; therefore people who chose to spend their leftover money from each pay check can often find themselves with nothing left over. Do you have money left over after each paycheck? If so, what do you do with it?