How to Save Money for Budgeting Beginners
Have you ever tried to set a budget, but feel like you don’t know where to start? With a few financial adjustments, you could be budgeting and on the way to saving money for the things that really matter to you (like Leading Lady bras!).
Taken from this Oprah article about personal finance, the Rule of 5 savings method is straight-forward and easy to follow. If you have never budgeted seriously before, this is a great method to adopt.
Consider your monthly income. From that amount, subtract the necessities—bills, loan payments, and retirement or college funds to which you regularly contribute. Whatever payments you make from this account are your core essentials that help keep you and your family’s life running smoothly.
Now, consider your second amount of income after all the essentials have been paid off; divide the second amount by five. Before you spend any of this money, put one-fifth of the second amount away in a separate savings account. This portion of the paycheck pie goes towards annual vacations, holiday gifts, and other special occasions that merit extra spending. Let this amount grow over the year so you can splurge on a beach getaway during the colder months.
What do you do with the rest of your monthly income? Aside from gas for your car, groceries, and other incidentals, this portion is your “pocket money.” Take your family to a movie, splurge on a new Leading Lady bra, or go out to dinner with your spouse. You can feel guilt-free about these spontaneous purchases because you’ve already paid the important bills. By making necessary payments and saving income first, you have no need to stress over spending the extra and you won’t second-guess your personal finance decisions.
Have some extra cash to spend? Leading Lady’s bras are 25% off site wide with free shipping on orders over $75. Happy shopping and saving!