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 all kinds of shenanigans which to the outside world seems “ridiculous” :)
We do such things as:
- Cutting out cable
- Going on No Spend months
- Selling all our crap
- Moving into tiny homes
- Paying off our debts (*gasp*)
- Juggling multiple side hustles
- Striving for early retirement in our 30s
- And one of our personal favorites: Saving 50%-75% of our income
But as sexy as these are, they’re not always doable for people either out of preference or the current financial stage they’re in, so instead we look for gateway drugs to get us hooked and moving in the right direction ;) And today’s drug we’re offering up 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 vs messing with your normal income. Things like raises, bonuses, birthday cash, and any other random dollars you might come across in daily life.
By taking this pill you get the following “highs”:
- A larger savings account once and for all!
- Less guilt from spending the rest of your money (i.e. the other 50%)
- An improved mood without any side effects ;)
And the beauty is that it’s all “extra” so you won’t even miss it! Not unlike my Challenge Everything experiment the other year which ended up netting me $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. Here’s a snapshot of what this $5,400 consisted of:
The first three areas were from cutting down expenses, but the last three are all categories that would fall under our “extra” money theme here. “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!))
If we combine those last three areas there, we’d have a solid 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 going with this new 50% rule you’d still be looking at a respectable $1,490.17, or roughly $125/mo. All extra money on the side, and all money we weren’t counting on in the least! And then we’d still have the remaining $1,500 to blow on whatever we pleased too! Woo!
So it’s a nice win-win all around, and gives you an easy “rule” to follow as well. Then when you’re all hocked up and addicted, you increase the dosage and inch even closer to the more “extreme” routes of 50% or more of your overall income! Sounds crazy at first, but not after you get your first taste!
Give it a shot and see how it goes… This is one drug your mamma would actually approve of ;)
PS: “Saving” can also mean investing or paying off debts too – whatever your main goal is!
[This post was originally posted in November of 2015, but had to bring it back for all new savers out there ;) It’s a hack one of my best friends has been doing for years and it works beautifully!!]
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!