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I want to wrap this Summer of Savings with a bang. How would you like to join me and get $500 transferred over to savings?
I'd love to get rid of this student loan once and for all by the end of this year.
What is a 50/50 Challenge?
You've probably heard the personal finance adage – “Spend less than you earn.”
Most people focus on the frugality side – cutting costs and being more efficient with your spending.
While I'm on board with that idea, I feel like it's an incomplete plan.
Sometimes there are circumstances where your expenses are generally good, but your income is lacking.
Earning more helps you reach your goals faster.
The 50/50 looks at both sides. The idea is you pick a goal and you split your efforts between cutting back on expenses and earning extra money.
I did a 50/50 Challenge few years ago and it was a success. I think doing it for August will be a lot of fun and help propel us closer to our goals of getting rid of the student loan.
Let me show you our game plan so you can save a ton of money this month.
Cutting Expenses in Half
Since we've already been trimming expenses this year, this will be a big challenge.
So here's what we're expecting in the month of August:
- Mortgage + Escrow
- Home Association Dues
- Household Goods
- Cable Internet
- Student Loan Payment
- Cell phone
- Car Insurance
- Life Insurance Premiums
- Gasoline for Cars
Our biggest expenses are fixed (such as our mortgage), but there are plenty of opportunities to review our spending.
One of the biggest is with our food. No, I'm not saying we should skip meals or anything. I do think we can be better with shopping.
Meal planning will be key. On Mondays, I'll create the menu for the week. I'm going to focus on large meals that can be made one night and eaten over two. This will save both time and money.
Insurance will also be something I'll be shopping around for this month. It's a small amount of time to invest in to make sure we're still getting a good deal.
I'm going to try out Republic Wireless new plan option – you can get a refund on the data you don't use.
I think this plan can further drop my bill, which is a ridiculously low $25/month for talk, text, and data. You can compare plans here if you want to slash your own cell phone bill.
Earning More Money and Having More Space
Seeing as I'm trying to de-clutter our house before we move into a new place, I'm hoping to kill two birds with one stone by selling some of our stuff.
I already started by going through my closet and picking some clothes to list on Vinted. I've heard good things about this app, but I want to review firsthand.
I'll have them up on Wednesdays. Keep on eye on Twitter to see how I do with those pieces.
I also want to get some stuff sold on Craigslist. Since I'm limited with my time, I'll have those up on Friday mornings and hopefully have them out by Sunday night.
A Few Hundred in the Bank
Having $500 saved will a wonderful way to boost our finances. And while part of this month will come from one-time sales, reducing our monthly bills will be a nice way to grow a net worth with little effort.
Ready to Save a Ton of Money?
I hope you join me this month for the 50/50 Challenge!
How much money are you trying to save? How will you use be using the money?