the 60 % soulution
By pbbbsra
@pbbbsra (1214)
Philippines
July 22, 2011 4:12am CST
I've read an article written by Richard Jenkins. He talked about how we actually save an make a better budget. He put the daily expenses, house mortgages and tax and all the fixed expenses on the 60%. He deducts the 60% as a sure thing from his monthly salary. Then the 40 % he divided among savings (retirement saving, long term saving, irregular expenses, fun saving). This is very interesting and starting this month, I am planning to adopt this on our monthly income. This way there will be a sure piece of our income that is for savings only.
What do u guys think of this system? Do you have another budget method which worked for you ?
4 responses
@damned_dle (3942)
• Philippines
22 Jul 11
I think that is a good plan, but is not applicable for everyone. Especially nowadays when the economy is down.
@divitiae (193)
•
22 Jul 11
40% is completly arbitary, you need to look at how much you need to save in order to meet your personal goals and to decide how important these goals are relative to immediate uses for the money, if your income doubled tomorrow that dosen't mean the price of your irregular expenses will also double.
@SpikeTheLobster (6403)
•
22 Jul 11
He can afford to pay his mortgage, taxes and all living expenses with only 60% of his income? Blimey, I wish I had his income. That's way beyond what most of us can do.
@soapies1973 (931)
• United States
22 Jul 11
It really is a wonderful idea if you have the extra money to do it. So many live paycheck to paycheck and have no money left over after their fixed expenses. If you do have the extra money though that is a great idea.
