Nowadays it seems that money is not a tool to live happily, but rather the aim of the game.
Many people live with money constraints and this prevents them from learning, exploring, evolving and becoming a better version of themselves.
Based on our experience, this is how you can get the most out of your salary so that your life can be well balanced: you will need multiple saving accounts to achieve this.
- 65% of your salary can be used for everyday living things, such as pay your rent, bills, food, petrol or insurance. Is this not enough for you? Are you sure? We need to learn to live within our boundaries, try to go through your bank statement and assess whether you have some expenses which are not really necessary.
- 10% of your income goes into a long-term saving account. Money in this account is meant to stay here, you do not touch them, they are for extraordinary situations which require additional resources.
- another 10% of your wages goes into a short-term saving account. Money in here is meant to be spent for things that make you happy and gratify you: a week end somewhere with your friends or partner, a sailing course, a beautiful dinner in a great restaurant, a new bike, anything that might please you. Money in this saving account shouldn’t stay there for more than 4 months: you deserve a perk!
- 10% of your salary should be allocated into an education saving account. Education is the fundamental tool to develop your skill set. Do you want a salary review? Identify a course which can provide you with additional skills needed in the business you work for. After that, you will have more grounds for a pay raise or find a new job! Do this once a year and you will see how far you can get!
- 5% goes into a charity account. Money in this account is meant to be given to others and/or for causes you care for such as global warming or clean water availability.
(Please not that if you have truly assessed that 65% is really not enough for you in order to face your daily needs and, you have no way to reduce your expenses, then you can add this 5% up to the 65%.)
Give it a try and let us know!