I’ve finally come up with a goal. It has taken me several weeks to think of something that I am motivated to do. Saving for a house or a car have not appealed to me because right now, there is no need for those things. But I’m saving for retirement, and I won’t need that for decades..what gives? Well, that seems necessary, and since it comes out pre-tax and I never see that money, I can’t say that I miss it, and I’m sure I’ll appreciate it in the future. I have been looking for something that will keep me motivated to save and continue saving every month. I know it’s easy to get excited for a short period of time, but maintaining the desire to save is something that takes a little more discipline.
In reading the archives of Frugal Dad, I came across and idea referenced by others: Saving 50% of your take home pay every month. Right now, I spend the equivalent of less than one paycheck on monthly expenses. Since I get paid once every other week, this leaves me with more than one paycheck a month (plus an extra paycheck every six months) to set aside in a fixed rate savings account, pay off student loans, and invest.
My current rate of savings is 54% and I’d like to bump up that rate of savings up to 60%. It’s not a huge difference and I believe that it is a short-term goal. In the next 2 months I should be able to adjust my budget enough to account for the difference, and after that, I will set a new goal for my savings rate. Any major life changes bring about new one time costs and budgets are hard to maintain in times of change, but I’ll always strive to maintain a high rate of savings.
Who knows, maybe in a few months, I’ll set a new goal: 70%!