Here’s the thing. I got a pay raise (woot!). So I thought I’d look at what I was spending and now I have an increase, work out what I shall do with it…
Back in the day, the split was (on take home pay)
40% on housing
16% on bill (saving for bills, strata, water, gas, electrical, and the unexpected plumber etc)
12% on savings goal (meeting my mortgage refinancing goal)
17% on ‘walking around money’ – all groceries, eating out, vanity etc.
7% on generosity
8% on slush – this would supplemental the above money if I ran short, and/or be added to various savings targets.
Anyone see that, there’s a doubling in slush! Best not let that go to waste or lifestyle inflation!
Oh and I just want to say, I already get 15% or so of my salary put to a retirement fund, which I contribute personally too above that as well (another 2% of my pre tax salary).
I’m thinking my options are
1. Save for a holiday
2. Save MORE for house refinancing at the end of the year (find out more in my monthly goals round up)
3. Give more away
4. Work towards the $6k I need to prepay a funeral
I’ve decided I’ll put another 13% in savings for the house refinancing (and if a holiday comes up, I’ll borrow from that fattened up account. Alternatively, I can use it for the funeral prepurchasing). That leaves 2% permitted for lifestyle inflation :p Well really ‘fat’ for when I don’t stick to my day to day budget! I think I’ll even ramp up the automatic savings plan, so I won’t ‘think’ about it too much.
Setting ambitious targets is the BEST way for me to achieve them. Strange but true. Otherwise I think the money is ‘leftover’ and allow myself to spend it! Oh and I’ll feel SO much more comfortable reading all those retire young/financial free blogs now!
I’ve just branched into having a facebook page, so please follow or like me if you’re into that! See the link to the right.