I am going to give an example of possible incomes and expenses to further illustrate the Bigger the Income, the Bigger the Savings plan. Everyone will have different expenses and different incomes.
We will call this example - Kelly.
Kelly is a single woman that only has one source of income, her job. She gets paid every 2 weeks. Her take home pay is the same every two weeks. She brings home $1,597.50 every two weeks. So we will calculate her monthly income to be $3,195.00.
Income = $3,195.00 every 4 weeks.
Kelly has rent, utilities, cell phone, car payment, car insurance, internet, cable, groceries, gas, gym membership and student loan payments.
Rent = $750 a month
Cell Phone = $70 a month
Car Payment = $250 a month
Car Insurance = $75 a month
Internet = $50 a month
Cable = $100 a month
Groceries $400 a month
Gas = $150 a month
Gym Membership = $30 a month
Student Loan Payments = $100 a month
Total Monthly Expenses - $1,975.00
Total income after expenses - $1,220.00
Kelly will decide what portion of that $1,220.00 per month she wants to save and then the rest will be for miscellaneous expenses and "fun"money.
I suggest Kelly saves $500 a month. That leaves her with $720.00 per month to spend as she pleases.
I would like to also point out that when you get paid every two weeks there will be two months that you get three paychecks. I love those months because it seems as though there is more money to spend. During those months you probably won't have more bills but you will have extra income. Feel free to save some and spend some. That's what we do.
We will call this example - Kelly.
Kelly is a single woman that only has one source of income, her job. She gets paid every 2 weeks. Her take home pay is the same every two weeks. She brings home $1,597.50 every two weeks. So we will calculate her monthly income to be $3,195.00.
Income = $3,195.00 every 4 weeks.
Kelly has rent, utilities, cell phone, car payment, car insurance, internet, cable, groceries, gas, gym membership and student loan payments.
Rent = $750 a month
Cell Phone = $70 a month
Car Payment = $250 a month
Car Insurance = $75 a month
Internet = $50 a month
Cable = $100 a month
Groceries $400 a month
Gas = $150 a month
Gym Membership = $30 a month
Student Loan Payments = $100 a month
Total Monthly Expenses - $1,975.00
Total income after expenses - $1,220.00
Kelly will decide what portion of that $1,220.00 per month she wants to save and then the rest will be for miscellaneous expenses and "fun"money.
I suggest Kelly saves $500 a month. That leaves her with $720.00 per month to spend as she pleases.
I would like to also point out that when you get paid every two weeks there will be two months that you get three paychecks. I love those months because it seems as though there is more money to spend. During those months you probably won't have more bills but you will have extra income. Feel free to save some and spend some. That's what we do.
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