If there’s one thing us $$$ bloggers love more than money, it’s the chase of the money. And during this chase we like to get into quite a bit of shenanigans, which according to the outside world seem pretty ridiculous :)
We do things such as:
- Cutting our cable
- Selling all our crap
- Going on No Spend months
- Moving into tiny homes, trailers, yurts
- Striving for early retirement @ 30 years old
- Paying off every ounce of our debt (*gasp*)
- Taking up dozens of side hustles
- And one of our favorites: Saving 50%-75% of our income.
But as sexy as these are, they’re not always doable for people whether out of preference or the current financial stage they’re in. So for those we look for the gateway drugs to get us hooked and moving in the right direction ;) And today’s drug is the one that gets you closer to extreme savings.
It’s called the “Save 50% of all your EXTRA money” pill, and once you take it you can’t stop.
Similar to saving 50% of all your income – which is often cited as “not possible” and “why the hell would you want to do that??” – this one gets you started by concentrating on all the extra money that comes in outside of your regular income. Things like raises, bonuses, birthday cash, and any other random money you come across in daily life.
This does a few things:
- Gets the savings ball rolling once and for all
- Frees up money to spend without feeling bad! (ie the other 50%)
- Let’s you keep your lifestyle the same until you’re ready to push it
And the beauty is that it’s all “extra” so you won’t even miss it! The important part is making sure to transfer it all over to a separate place though so you can start watching it grow. Not unlike my Challenge Everything money which ended up at $5,484.07 after a year of stashing.
In fact, that’s a great real-life case study on how this 50% gateway drug could look. Check out how this $5k broke down:
The extras in this example are “stuff sold”, “change found on the ground” and “random money.” With random money including gift money, medical reimbursements, tax refunds, and even an out-of-the-blue lawsuit check that found its way to us (thanks Toyota!). Combined we’re talking about a stockpile of $2,980.34.
Now in a perfect world you’d bank all of it if you could (which is exactly what we did), but following this 50% rule we’d still be looking at a very solid $1,490.17 or roughly $125/mo. All extra money on the side, and all money we weren’t counting on at all And we’d still have $1,500 to blow on whatever we pleased – woo!
So as you can see it’s a win-win all around and gives you a nice “rule” to follow as well. Then when you’re all hocked up and addicted, you increase the dosage and inch closer to the more “extreme” routes of saving 50% or more of your total *income*. Sounds crazy at first, but not after you’ve gotten a sweet taste ;)
Give it a shot and see how it goes! This is one drug your mamma would approve of…
PS: “Saving” can mean investing or paying off debts too btw… whatever main goal you’re shooting for.
Bonus tip: Find a good "balance transfer" offer to help pay off debt faster!
If you’ve been making payment after payment (on time) and still haven't been able to get your debt under control, snatching up a good balance transfer credit card offer may be the ticket to try. That’s where in order to gain your business - credit card companies will let you transfer your existing debt to a new card and let you pay ZERO PERCENT interest on it. Saving you tons every month!
What's the catch? Usually balance transfer cards charge a fee (around 3% of your debt balance) to let you transfer your balance to their 0% interest offer. But we've found a great credit card that will let you do a balance transfer absolutely free. Click here to learn more and see if you qualify!
PS: If you don't trust yourself with another credit card, ignore this! This strategy is to help you get out of debt quicker, not risk adding more to it.