Are you ready to go big this year with your money? How about saving half your income?
Sounds crazy, but it’s doable. The masterminds behind Stacking Benjamins want to show you how.
How to Save Half Your Income
Joe Saul-Sehy and Kathleen Celmins are teaming up on a new course called Save50.
Most people might wonder how in the world they can save that much money, but it’s really not complicated. It comes down to five steps:
Figure out your magic number
Find ways to cut expenses while still living like a regular person
Find ways to make more mone
Where to put all that money after you’ve saved it
How to keep going for the rest of your life
The trick is following through on the process. The good news is that it is possible.
Save More By Changing Your Systems
Changing your habits can seem impossible, but if you can set up systems you can automate some of the process.
This can help you stay focused on your goals without having to interrupt your routine.
One great suggestion from Joe – depositing your paychecks directly into savings. You can then set up transfer from there into check for the bills.
This change has been a tremendous help for couples, allowing them to save so much more than if they waited to save after the bills and other stuff comes out.
Save Half By Spotting Money Leaks
Reviewing your spending together can be worth the effort.
Joe pointed out two of the biggest culprits when it comes to money leaks were:
Many couples don’t have a budget for entertainment and eating out is usually way underestimated.
There are a few ways you can keep your spending in check, depending on what motivates you:
Alerts: You can set-up through your bank, credit union, or services like Mint to text/email you when you spend a certain amount.
Envelope system: take out the cash and put it in a small envelope or a fold of your wallet. Once that money is gone, you’re done for the month.
I personally like the alerts, but my husband is more of a cash man.
Earn More and Build Wealth
While saving and optimizing your spending is crucial, it’s only part of the process. Making more can help you reach your financial goals quicker.
While side hustles can be a wonderful to boost your income while expressing your entrepreneurial spirit, it’s not your only option.
Joe suggest negotiating with your current job better salary. You can come from a position of strength if you prepare ahead of time. Reserach what value you can add to the company (along with the corresponding pay).
Save Half Your Income
Community is critical if you’re looking to make big changes. The comadarie and accountability can make all the difference.
When it comes to a marriage, something that many couples often have problems agreeing on is their finances.
Let’s face it, no one wants to live in debt or live uncomfortably because of the number in their bank account.
We all want to be able to have the money to buy the things that we want, not just the things that we need to live. However, conflicts often arise when two people with differing financial goals must live under the same roof.
One person wants one thing and the other wants something totally different.
Often this causes plenty of problems. But in the end, an agreement has to be reached or this simple problem could lead to a world of others.
Tips on Working as a Couple With Money
If you’re both financially stubborn, or maybe you’re just confused as to what your spouse wants, follow these steps in hopes of coming to some sort of agreement.
Even you can’t agree on everything, you at least have shed some light on what each of you want financially:
1. Build financial objectives. Sit down one evening after dinner with some paper and pencil in hand and write your financial objectives.
Think about what you want to do financially. Are you looking to start a retirement fund? Want to set money aside for future children? Looking to save up for a vacation each year?
It’s important that your spouse is aware of your financial wants and goals. Every step you take after this one should simply be a response to these agreed upon goals.
2. Consider debts. Both of you will need to consider the debts you have. From college loans to car loans, credit cards and any other debt you have, it’s important that your spouse knows and is aware.
This way, money can be spent and saved each month, depending on the amount of money you both put towards paying off your debt.
3. Consider getting rid of some things together. This is definitely the hardest part: deciding what you should spend less money on each month.
Maybe you have a tendency to go on mini-shopping sprees every other weekend. Or maybe you find yourself buying lunch out each day.
It’s important that each of you opts to cut down on spending somewhere. Compromise is important and will help lead to a positive agreement.
If you can’t think of it, you simply haven’t discovered it yet. There are many aspects to managing your money: spending strategies, investing, debt reduction, savings, budgeting, and more.
Odds are your spouse will excel in a couple of those areas. As a couple, determine what those areas are, assign roles and responsibilities, and encourage your spouse in his or her respective duties.
5. Consider separate spending accounts. I’m not a huge fan of this approach, but for some couples it’s the best solution.
Pay all of your group expenses and meet your major financial goals with a joint checking account. Then, transfer spending money to individual checking accounts.
This money can be spent however each spouse desires. This way you know you are meeting your objectives and no one is scrutinizing anyone’s spending.
6. Take a financial class together. Part of growing together as a couple is the act of sharing in new learning experiences.
There are many financial classes you can both take to help you move in the same direction financially. D
ave Ramsey’s Financial Peace University comes to mind. But that is just one of many. Do some research at your local library, find a book, or a take a class online.
7. Meet with an objective financial advisor. If all else fails, go to a professionally-trained, objective, third-party to help you find direction.
A fee-only Certified Financial Planner would be a good place to start. They will charge you a one time fee to look at your finances and give you a game plan. they don’t have a skin in the game, you can both rest assured following their advice.
Thoughts on Communication as a Couple
Coming to a solid agreement when it comes to finances can be hard, especially if your spouse already has his/her financial wants, needs, and objectives already set in stone.
It’s important that you can find a way to bend and stretch a little so that both of your wants and needs monetarily are discussed and taken care of.
What tips do you have for finding financial agreement with your spouse?