6. The 20/80 method
Using this plan implies you’re able to do the following actions:
You should also remember that you should save first, then spend the rest. If 20% is too big of a number, try to start with 10% or at least 5%. This will help you develop a habit and create an initial saving’s fund.
5. The 60/10/10/10/10 method
This method works this way:
Your main expenses are food, utilities, transportation, and clothing. A car, a house renovation, or paying off debt all belong to long-term purchases. Rare expenses would be things like repairing your car, visiting a doctor, or expensive gifts.
If you have a large debt, it’s better to just repurpose the 10% that you saved for retirement until you pay it off.
4. The 10% method
This method means you have to save 10% of your money from your total income. Such a small amount won’t affect your budget or the quality of your life.
It’s even better to put this money in a bank so you don’t have the urge to spend it right away. If you can easily save 10%, try 15% or even 20%.
3. The “halves” method
This method suggests that you divide all your money into 2 parts: the first part goes toward everyday needs, the second part goes to the bank. When your cash on hand is gone, go to the bank and take half of the sum you have in there. Repeat as needed.
It works best for those who can’t control their everyday expenses.
2. The “4 envelopes” method
1. The granny method
This idea is really simple: