I’ve written about the idea of a 100% personal tax, which is the idea that whenever you buy something that isn’t a necessity, you impose a 100% tax on yourself that goes toward your savings account. This is a forced savings tactic which helps put your spending in perspective. If you have a difficult time saving and you think you spend too much, consider imposing a personal tax on yourself, whether it’s 50%, 75%, or 100%.
The Problem With a Personal Tax
One complaint I’ve seen about the personal tax is that is forces us to transfer money from a checking account into a savings account after each purchase. If we wait until the end of the month, the money might be already spent and it might be impractical to make a large transfer. If the money is left over at the end of the month, you probably don’t have a savings problem, anyway.
The Personal Tax Solution
Well, there’s a perfect solution to this problem, SavedPlus. It’s a site (and Android and Apple apps) that lets you set up automatic transfers from your checking account to your savings account for each purpose. There are a ton of customizable settings, and within a few minutes you can see how flexible SavedPlus can be to fit your lifestyle and savings goals.
Some of the great features include:
- Control the percentage of each purchase that gets transferred
- You can set a maximum purchase amount (won’t transfer for large purchases)
- Pause automatic transfers for a scheduled amount of time (great for vacations)
- Set a minimum checking account balance (so you don’t transfer too much out of your account)
If you’re having trouble saving each month and want to do a better job saving for a rainy day, for a vacation, or long-term goals, check out SavedPlus and consider using a personal tax. Start at 10%, and if you can, try to increase the savings percentage each month.