The Personal Finance Podcast Boost Your Savings Rate to 20%+ in 5 Easy Steps (Money Q&A)
May 8, 2023
AI Snips
Chapters
Transcript
Episode notes
Set And Grow Your Savings Rate
- Track your savings rate as a percent of net income and aim for 20% or more.
- If you can't hit 20% now, increase savings by 1% each month until you reach your maximum, then grow income.
Be Precise With Your Budget
- Use a precise budget to allocate every dollar or use a reverse budget to save off the top.
- Round income down and expenses up to create a buffer and avoid overdrawing savings.
Audit Recent Spending Patterns
- Analyze the last three months of bank statements to identify spending patterns.
- Replicate your lowest-spend month and investigate what caused your highest-spend months.