Saving 50% of your income involves some commitment. Paying yourself first – as soon as your paycheck hits your account is the perfect way to make sure these things get done. Set a specific amount and have it automatically transferred into a savings account.
You really need to be in the right mindset to take on this challenge. You need to understand that the majority of the things you buy, you don’t need. You will also need to find ways to cut back on paid daily living activities to fit your expenses in the new budget. I have a whole bunch of tips to help.
Before you start saving half your income, you need to know where your money is going. By taking a look at your online banking or receipts, you will easily be aware of how you spend. This will make it easier to know where the spending holes are.
You just can’t reach big personal finance goals with debt hanging over your head. First things first, knock that debt out. Follow the baby steps and take care of that once and for all, never to return.