Learning how to save money isn't always easy, but it's an essential life skill! However, it can be difficult to save your income like you should if you don’t know how to do it correctly. Saving 50% of your income may seem difficult, but more people are doing it than you might think, and here’s how.
How to Save Money – How to Save 50% of Your Income
Why should you save 50% of your income? It's the best way to save money for retirement, and vacation, and to pay off debt.
Direct deposit half of your income.
One way to save 50% of your income is just to do it. Have half of your income deposited into a bank account that you do not use every day. If you use PayPal, then have this income transferred into a different bank account. Make sure your savings account and checking account are not connected via the same bank. This way it takes a few days for you to transfer money and won't be as tempted to do it. Also, if you don't see the money every day you tend to forget it's there.
Lower your debt.
It can be nearly impossible to save 50% of your income if you have a lot of debt. Lowering your debt is an easy way to save 50% of your income. Pay off as much debt as you possibly can. Although this may take some time, imagine how bittersweet it will be to reduce your debt and save that money. Make sure to learn how to start eliminating debt.
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Live on less than you make.
This is probably one of the most important parts of saving your income. Living on less than you make is super important. For example, if you make $2,000 a month, but have an $1800 house payment, living beyond your means. If you are living beyond your means, you really need to take a step back and make some changes.
Take on a side job.
One of the best ways to save some of your income is to make more money. Taking on a side job is one of the best ways in which you can save 50% of your income. Most people use their entire income for bills, which is why increasing it would allow you to save more. This may be easier said than done, but it’s possible! The key to a second job is to make more money per hour. This also helps you spend less because you aren't able to go out and spend money or at home on the computer to spend money. There are several ways you can earn money at home as well like taking surveys to pay off debt and or starting a blog.
Related: Clever Ideas to Make Your Paycheck Last Longer
Don’t look for the cash.
When you know the cash is in your bank account, you’re more likely to spend it. The key to saving 50% of your income each month is not to look for it. Use the envelope system and create a budget system for your family. Once that cash is gone, it’s gone!
Plan ahead as much as possible.
There is nothing that ruins your plans for saving money more than not planning. You NEED to plan when it comes to the financial part of life. Sadly, you have to plan everything from where you’ll eat to where you’re going. While planning SUCKS, it really can help you in the long run, especially when it comes to saving 50% of your income.
Related: 50+ Frugal Living Tips for Large Families
Be picky about your purchases.
Sure, there are a lot of things that you could probably go out and buy. However, when it comes down to it, you need to be able to say no. If you do have extra money but are spending it, you’ll never be able to save. You can easily save 50% of your income by being choosy about what you buy and saying no to unnecessary purchases.
Guess what? Saving 50% of your income is unheard of, but that doesn’t mean it’s not possible. With a lot of hard work, you can also save this much of your income every paycheck. What tips do you have for saving 50% of your income? I’d love to hear your tips!
Christina @ Raising Savers says
Great tips! I’ve been researching the stats on saving. When you mentioned that millions of people save 50% of their income, could you share your source? Many thanks!
Danielle, The Frugal Navy Wife says
I actually remember reading it in an issue of Forbes Magazine at while my Doctors a few years back it was the first time I had been introduced to the concept. I’m pretty sure that was the stat on it but since I am unable to find the article I read online, I have reworded my sentence.