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How to save $1,378 in 2022

How to save $1,378 in 2022
Looking to bulk up your emergency fund in 2022? Take this 52-week savings challenge to save over $1,300!

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Seconded with Maria - this chart is perhaps more generic if expressed as a percentage of income, like in for example described in the Richest Man In Babylon (book's like 2 bucks only--might be worth picking up to learn about financial concepts), where one would save at least 10% of their income.

That said, this chart is amazingly awesome and is definitely a significant way to start saving and putting away money that can you can invest and grow to tons of money over time.

I personally save by automating 20% of my income as it get ACH'd into my account to:

1. Stocks (Vanguard, which'll automatically invest my income into some diversified, low-cost index fund).

2. A separate savings account I never touch / emergency fund.

This way, I have no temptation and don't need to think about my spending. What I have in my checking account is what I can spend. And then I also pay off my credit cards twice a month to minimize utilization rate / maximize credit score.

1. Once, with autopay once a month.

2. The second time I pay manually. Even if I forget to do this, my autopay will still pay so I incur 0 interest.

I've got other strategies I use to save money -- including but not limited to using an app that lets me get food for $5 even though I live in NYC.

--

https://goodmoneygoodlife.com

@maria rose posted:

To do this plan as it stands means that your monthly income already has this amount free and not being utilized to pay down debt. If your budget is that tight you need to start smaller until you can put the amount away without needing it for a minimum of a year’s time.

Good points! For me, I'm prioritizing saving what extra income I can after I pay down a nice chunk of debt each month.

So, when you are paid monthly, set the money aside for each week? Since 12 months is only 48 weeks, I get confused how to do this on a monthly basis because with your figures (which are correct, as I did check) mine comes out to an extra month because to save 52 weeks, although it is a year, and 12 months are also a year and I would save 13 months? I think I'm confusing myself. I guess for those of us paid monthly we should add $20 at the beginning or end to make up the difference?

Yeah, this doesn't take into account when people receive their paychecks. I think the fun lies in how easy it is to get started -- save just $1 in the first week and ramp up from there.

A much more simplified way is to save $115 a month, or around $30 a week. That makes more sense in my head. 🙂

For Christmas my mom bought all the grandkids something to help them bulk up their money intelligence... For my adult children it was how to manage money books. For my 6 year old nephew it was $25 in Loonies with a note:
10% to buy food for the food bank
10% to savings
80% to spend.

What % of your income do you put away each pay period?

So, when you are paid monthly, set the money aside for each week? Since 12 months is only 48 weeks, I get confused how to do this on a monthly basis because with your figures (which are correct, as I did check) mine comes out to an extra month because to save 52 weeks, although it is a year, and 12 months are also a year and I would save 13 months? I think I'm confusing myself. I guess for those of us paid monthly we should add $20 at the beginning or end to make up the difference?

Okay that’s a nice idea but it is assuming that you are also decreasing spending money by that amount in the same matter. I would modify it by percentage of decrease in debt especially if your debt is affected by the lovely interest rates which are increasing. I am only saying this because I have tried this method to put money away and I know that I can’t control the unexpected things that create extra costs that will affect your ability to put money away for saving. To do this plan as it stands means that your monthly income already has this amount free and not being utilized to pay down debt. If your budget is that tight you need to start smaller until you can put the amount away without needing it for a minimum of a year’s time. I have already put away the amount noted for week four as being in the bank, which means that I have to plan from there forward. Just utilize the chart as it fits your budget and remember to not use the money that you have put away for one year.

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