Seriously, if you are living paycheck to paycheck, especially if your income is low, saving 50 percent of your income will be impossible. We have been told to save 10 to 20 percent of our income by many financial gurus, but what if you save 50 percent, that sounds unusual.
Honestly, the effective way to save 50 percent of your income is to increase your monthly income and reduce expenditure.
Examine Your Daily Routine
One of the biggest obstacles or the things that will hinder saving 50 percent of your monthly income is how you spend daily. Check if you are spending on things like coffee in the morning, drinking at the bar, hanging out every day at the restaurant.
After proper examination, try and cut out stuff that is not inevitable.
Learn How To Cook
Learning how to cook is important especially for those that eat outside. People who do not know how to cook eat out at least six times in a week and that’s bad to your wallet. Eat at home and watch your savings pile up
Increase Your Income As You Age
This point should come even first before others. If your income is not even enough, how can you then save, let alone of 50 percent?
To put just, the first to do even change your job if it’s not yielding the income you need to cater your basic needs.
It is when you have a reasonable amount of income that’s when you can start saving unless you are spending extravagantly.
Minimize Your Spending
There is nothing you can do if your spending spree attitude is there. Minimize your spending and try questioning whatever you want to purchase.
Open A Separate Account For Saving
If you can open a separate account and instruct your company or the bank to slash your salary in half and transfer it to the account, that would be okay, if you can stick to it.
The point is when you receive your monthly income without getting it slashed, you get tempted to spend it even if there is a budget.
Investing is just like a bonus point here because the subject is how to save half of your income, not to invest. You save before you invest.
In all of these points listed, I will invest the money, instead of having it lay in your account.
On a final note, saving half of your income is very tasking, I must say, but commitment is needed to ensure that it’s done.