I found this ‘formula’ for savings from one of the sites I frequent.
INCOME – SAVINGS = EXPENSES
The formula tells us that as soon as we get our salaries we have to take out savings immediately (essentially paying ourselves FIRST) then make do with whatever’s left for expenses, instead of the other way around. The key to this formula working is having fixed savings goal/s.
I’ve been using this formula for about eight months now. It wasn’t easy at first and it’s still not easy now, but I’m getting used to it. I had to unlearn the notion that I have to take care of all the expenses and pay all the bills first then whatever’s left would be THE savings.
I know it’s easier said than done but why not have a go at it. Let me know if it works for you.
INCOME – SAVINGS = EXPENSES
The formula tells us that as soon as we get our salaries we have to take out savings immediately (essentially paying ourselves FIRST) then make do with whatever’s left for expenses, instead of the other way around. The key to this formula working is having fixed savings goal/s.
I’ve been using this formula for about eight months now. It wasn’t easy at first and it’s still not easy now, but I’m getting used to it. I had to unlearn the notion that I have to take care of all the expenses and pay all the bills first then whatever’s left would be THE savings.
I know it’s easier said than done but why not have a go at it. Let me know if it works for you.
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