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How I Am Able To Save 80% Of My Salary

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I remember months ago I was asked about my budget breakdown percentage. When it comes to money, there are many rules as to how to budget it like the popular 50/30/20 where 50% is directed to expenses, 30% to flexible spending and 20% for your finances. While that is great, identifying your budget breakdown still boils down to your financial needs and present financial situation. That is why, before embracing a budget tool or a budget percentage, do some financial assessments first.

Going back to the question as to my budget, my answer is 80/20. I know 80% is a huge percentage but don’t get me wrong. That’s not my expenses but rather my savings. Every month I just allocate 20% of my earnings to my expenses. Again it all boils down to your financial needs and financial situation.

You might wonder how this is even possible. Or am I crazy? Well not much. I kid, I kid.

Hence, allow me to share just how it is possible to save 80% of my salary.

Automate Savings

I am an advocate of automating savings and trust me when I say this is the most effective tool ever. This makes savings a no-brainer for me since the amount that is deposited in my ATM would be the money left after savings. And I am sort of lazy going to my bank every single day to withdraw some cash hence I really need to budget and stretch the money that is on my ATM. You see we have a cooperative bank in my place of work and I told them to get this much every payday. And considering the new interest yield of my savings in my cooperative, I love to save more. Then I just redirect some of my savings to my business and investments in order to yield more.

Budget the Rest

The next thing to do is to budget the money that is left from savings. Since I am addicted to savings, I want to save more in the process. Here is where budgeting is crucial. To date, there are already a lot of budgeting tools and inspirations. The only thing you need to do would be to stick to it and work with it. Any budget would be deemed useless if you are not sticking to it. However, when doing your budget make sure that it will work for you. That is why a constant updating of one’s budget is essential. Reinvent and rehash whenever necessary.

Frugality and Creativity

There is a bad connotation whenever frugality comes in to the picture. Some would even interpret this as a bad trait. But I digress. As a matter of fact, frugality is creativity in its finest sense. You might ask why. Simply because you extend the life of your money and you do different things in order to accomplish it. With that sense, you discover and find creative ways to do such. With regards to my salary, frugality really helped me stretch my money and my budget. I get to do things cheaply. For example, instead of going to work via PUV, I make sure to join in my parents before they go to work so they can drop me to school for free. Let’s not forget home snacks and meals.

With the things stated above, I can guarantee that whatever percentage you would want to save from your income is possible. Take for instance my example. You just have to define your goal as to why you save and start from there. Plus, do not forget the power of automation. Whatever the percentage is, the important thing is you get to save.


P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.

P.P.S To those doing the 52 Week Money Challenge, it is Week 30 already! Did you deposit the next amount yet?

P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

P.P.P.P.S I am also sharing my stock market secrets and information via these resources