Breaking the Savings Barrier: A Gateway to Extreme Frugality
Are you tired of feeling stuck in your financial journey? Do you dream of achieving extreme savings, but don’t know where to start? The truth is, getting started is often the hardest part. As money enthusiasts, we’ve tried it all – from cutting cable to selling our unwanted items, and even moving into tiny homes. But for many, these extreme measures just aren’t feasible.
The Savings Gateway: A More Accessible Approach
That’s why I’ve discovered a more accessible way to kickstart your savings journey. It’s called the “Save 50% of all your EXTRA money” strategy, and it’s a game-changer. This approach focuses on saving 50% of any extra money that comes your way, outside of your regular income. This includes raises, bonuses, birthday cash, and any other unexpected windfalls.
The Benefits of This Strategy
So, what makes this strategy so effective? For starters, it gets the savings ball rolling without requiring drastic lifestyle changes. You can still enjoy your daily life while building a safety net. Plus, you won’t even miss the extra cash since it’s not part of your regular income. The key is to transfer this 50% to a separate account, where you can watch it grow over time.
A Real-Life Example: “Challenge Everything” Savings
I put this strategy to the test with my own “Challenge Everything” savings experiment. Over the course of a year, I cut bills, sold unwanted items, and stashed away any extra cash. The result? A whopping $5,484.07 in savings! Here’s the breakdown:
- Cell phone savings: $1,350.96
- Cable/internet/phone savings: $785.69
- Car insurance savings: $367.08
- Stuff sold: $1,027.67
- Change found on ground: $22.67
- Random money: $1,930.00
- Total: $5,484.07
The Power of “Extra Money” Categories
Notice the “extra money” categories in this example, such as “stuff sold,” “change found on ground,” and “random money.” These categories added up to $2,980.34 in savings. Following the 50% rule, I would have still saved a substantial $1,490.17, or roughly $125/month.
A Win-Win Strategy
This approach is a win-win because it allows you to start small and build momentum. As you get hooked on saving, you can gradually increase your dosage and move closer to more extreme savings goals. And remember, “saving” can mean investing or paying off debts too. The goal is to put this 50% of your extra money towards your main financial objective.
So, give it a shot and see how it goes! This is one “drug” your mom would approve of.
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