How to Consistently Saving Money for Spendthrift Person Like You
You have to stop now!
Being broke is a nightmare.
But, I never care about it on the first day I receive my paycheck every month. For an extravagant person like me — a few years ago, spending my money on anything I want gives me so much dopamine to my brain.
It felt so good.
Until I realize my bank account balance is near $0 in the middle of the month.
My breath is short. I’m getting anxious and thinking, “Where is my money? Why do I spend so much on these sh*tty things? Ok, let’s stop this garbage habit the next month.”
Already guessed,
I repeat the cycle, again and again, every month.
Then,
In the middle of 2016, I met a girl — now she is my wife who inspired me to manage my monthly paycheck. The way she spends, savings, and invests her paycheck is kicking deep in my brain.
“Why don’t I do like this earlier?”
I kept thinking about it since I knew her paycheck management skill.
Here’s what she does with her paycheck monthly — and maybe you can adapt to achieve your financial goals:
She uses the “50 30 10 10” rule
“How do you manage your paycheck monthly?” I asked her on our fourth date — inside a comfy coffee shop in the town.
“First, you need to know where you should put your money. Divide them into pieces,” my wife answered.
From her thought about money, I know how amazing she is. From that day until today, I have never stopped getting inspired by her in every aspect of my life.
By the way, here is my wife’s “50 30 10 10” rule. She:
- Allocates 50% of her paycheck for personal expenses, includingapartment rent, internet credit, monthly groceries, laundry, weekly eating at restaurant budget, and more.
- Allocates 30% of her paycheck to personal savings for her short-term financial goals. For example, she prefers to save first and buy a Macbook Pro using her debit card rather than a credit card.
- Allocates 10% of her paycheck to her investment portfolio. She has some stocks, mutual funds, crypto, and gold, as far as I know.
- Allocates 10% of her paycheck for unexpected events. For example, my wife got a phone call from her elementary school’s ladies; then, they asked her to hang out at the local cafe. Yes, she uses this 10% rather than disturbing her personal expenses budget.
She is saving and investing on the same day she received her paycheck
Thank god we live in the digital era. Everything becomes easier.
Are you hungry? Let’s order food online.
Do you want to buy a new backpack for your hiking session next week? Let’s buy it online on your favorite e-commerce.
Including financial matters. We have mobile banking nowadays.
Do not save what is left after spending, but spend what is left after saving.
My wife always transferred 30% and 10% for her personal saving and investment on the same day she received her paycheck. When I ask her, “Why you can’t wait for tomorrow? Or maybe next week? Why today?”
“Because I don’t trust myself not to use these budgets for anything else. I need to discipline,” she answers. And smile.
It’s kicking me intensely.
Contrary to my habit, I always think I can save my money the next day after receiving a paycheck. Or maybe next week. Or maybe next time. You guess… I never spend any cent on my savings. Even I don’t have any bank account for it.
Stupid me.
She uses a non-accessible bank account for her savings
“Don’t you have a willingness to use the money from your saving account to buy something? A handbag, maybe?” I asked curiously.
“Of course I have! My “devil” side is turned on when I see H&M’s new collection. I want to buy it, I want to buy it. Hahaha,” she laughed.
“But I don’t need those blouses. I have many in my closet. So why should I buy it?” She continued.
I smitten. My eyes brightly looked at her.
From our conversation, I know that she uses a different bank account for her personal saving.
On that account, she snips her debit card into pieces using scissors. And also refuse to use its mobile banking. Bloody hell-o!
“I don’t want and need to access my personal saving account easily. If I need the money for buying something on my goal list, then I should go to the bank.”
Wonderful idea!
She has clear goals for her saving and investment
Personal saving for short-term financial goals and investment for long-term financial goals.
Short-term:
My wife needs a new Macbook Pro for her video editing needs. She will save her 30% of paycheck until the Macbook Pro price is achieved. It could be six until eight months. It’s a long time for me, but she is patient. She waits.
Long-term:
My wife wants a one-acre land. She will use it for building our dream house. So, she advised me to start investing in stock and mutual funds together. Ten years long from the day I asked her to marry me. It’s a long journey, but we enjoy it.
Rich people believe “I create my life.” Poor people believe “Life happens to me.”
She is consistent
The most important thing I can’t do 100% well until now: consistency.
But it shocked me: she can.
My wife is a super consistent person. If she says A, it should A. If she says B, it should B. Nothing can disturb her consistency.
“How come you can be a consistent person?” I asked.
“Strong determination and hard work,” she answers with a serious expression.
I’ve read about it everywhere. Many people say consistency is a good thing to do if you want to achieve any success. But it’s hard-hell for me to do. I don’t know; it was hard.
Until I started living with her.
Her strong positiveness vibe possesses me every day.
Today, I can say that my consistent level is 80%. Not bad for a former extravagant person like me. Yeah… I am working to be a more consistent person every second. Wish me luck!
Final thought
If you are an extravagant person today, it doesn’t mean forever.
I can change myself to be a better person so that you. There is much information spread on the internet about eliminating this bad habit from you.
Let’s start action now! It’s a long journey, but it’s worth it.
Final word,
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.
