Making Your Money Work for You

Hi, I’m Saundra Davis, financial coach here at SaverLife. Today we’re going to talk about how you make your money work for you.

What is a budget?

If you ask, “Do you have a budget?” many folks will say no, they don’t have a budget. The fact is we all have a budget, whether we know it or not. Money comes in and money goes out and how our cash flows by default becomes our budget.

Is your budget working for you?

The question is: Are you happy with the choices that you make and are your choices getting you what you want? If the way you’re spending your money is not getting you what you want, you might be happier if you make some choices about where you want your money to go before you actually spend it. There are some easy rules of thumb that you can try to see if one of them work for you.

The 80/20 rule

Let’s start with the 80/20 rule. Many people try to live within 80% of your income, making sure that 80% of all your income goes to your living and your lifestyle expenses. So we’re talking about your rent or your mortgage, your food, your transportation, leaving 20% to put in to savings. If you live in an area where it’s just not reasonable to live within 80% of your income, you might have to do a 90/10 percent split: 90% for your living expenses, 10% for savings.

The key is make sure savings factors in to all of your decisions, even if it’s only a little bit and that you put your savings aside first before you pay all of your bills.

Re-evaluate your new strategy

Now the question is: How will you know if this is working? Try on a new approach for a short period of time – one, two, or three months – to determine if you’re happier with the choices that you’re making. Remember you’re the boss. Your money, your decisions. You can decide how you save and how you spend.

What are you saving for?


Recommended Articles

What does it mean to “pay yourself first”?

Hi, I’m Saundra Davis, SaverLife’s financial coach. Let’s talk a little bit about the golden rule of saving: pay yourself first. So many people say, “I’m going to wait and save after I’ve paid all my bills and I’ll save what’s left,” but we all know what happens then. Very seldom is there anything left. So the idea of… Read more

What’s your money style?

Hi, I’m Saundra Davis, SaverLife’s financial coach. Today we’re going to talk a little bit about our money personalities or our money style. Are you a spender, saver, or planner? Our approach to saving or spending really is rooted in the foundation of how we live with our money in our individual personality. Some of us are savers. Some of… Read more

How to Prepare for a Family Financially

Since we know that everything affects everything, let’s talk about how our financial lives are impacted by our family situation. Over 80% of SaverLife members live with at least one other person—be that a parent, child, partner, or roommate—and even if you are single, you may have heard that having a baby can really break… Read more