My personal savings plan
This being my first post I thought it would be a good idea to outline my personal savings plan. The goal of this blog is to track my savings,income and goals while creating a plan to stick to. I will try to be as transparent as possible without going into immense details of my person life.
One of my main goals is to one day maybe ten years from now have enough knowledge to then teach the next generations how to handle money themselves and break away from living pay check to paycheck.
So let’s start with some simple details about my income/ expenses.
I currently work in a office 9-5 a standard job a tiny bit above minimum wage, this differs from a lot of F.I.R.E blogs I have previously seen where they have a higher than minimum wage job. The goal of this is to show that with being frugal and saving anyone can save no matter what job they have if they trim down their expenses.
I do plan on increasing my wage to above minimum either by promotions or a new job however if this is not possible I do plan on boosting my income with other “side hustles” which I will share with everyone. Also for anyone wondering I do not plan to make any income from this blog however if it does naturally start to gain a lot of traffic to earn more than pennies all of that money will be going straight into my savings portfolio just like my other side hustles. My goal is that my job will be for bills and daily expenses plus a little savings and then all extra income from whatever source will go straight into my savings portfolio NO TREATS!
Along the way I will share money saving tips as well as money earning tips, money management and anything else I find interesting such as good personal finance books.
So let’s break down my finances into numbers.
Income after tax £1200
Main bills (housing included) £300 I will go into detail on how these are so low currently they will go up in the future!
Travel to work is £100 a month
I give myself a weekly limit of £100 this is for food and anything else I need to buy this may include clothes or any other necessities
So lets do that math
100×4=400 (weekly limit over the month).
£400 is the amount I will save every month currently with my job, that gives me a savings rate of 33% which isn’t the best however it is a lot better than a savings rate of 0%.
I am currently not sure as to whether I should improve my earning ability or my savings ability (probably a bit of both). I can see that £100 a week for food and other items is very excessive and I will be working to cut that down ASAP.
That is my most basic income/expenses/savings report to start of with. I will go into a lot more details some time in the future however for now I will leave it like this and focus saving/earning more.
Start somewhere and you will end up somewhere.