By MP Dunleavey
Silently, secretly, your money disappears under some hideous voodoo spell, right? No way. Take a look at some ways you're flushing your cash down the loo -- and what you can do about it.
READ THE ARTICLE:
10 ways you mindlessly waste money - MSN Money
Sunday, January 14, 2007
A simpler way to save: the 60% solution
By Richard Jenkins
How many of you have tried budgeting and think it's a waste of time? Come on, let's see those hands.
OK, that's just about everybody.
I've kept a budget of one kind or another, first on paper and then with the help of various software programs, for about 20 years -- despite a strong suspicion that I was wasting my time. The illusion of control, I argued to myself, was better than none at all.
My approach to budgeting was to carefully track my spending during the month and to adjust my budget targets up and down in each category, so that my total expenses never exceeded my income.
Useful? Sometimes.
Anal-compulsive? Probably.
READ THE ARTICLE:
A simpler way to save: the 60% solution - MSN Money
How many of you have tried budgeting and think it's a waste of time? Come on, let's see those hands.
OK, that's just about everybody.
I've kept a budget of one kind or another, first on paper and then with the help of various software programs, for about 20 years -- despite a strong suspicion that I was wasting my time. The illusion of control, I argued to myself, was better than none at all.
My approach to budgeting was to carefully track my spending during the month and to adjust my budget targets up and down in each category, so that my total expenses never exceeded my income.
Useful? Sometimes.
Anal-compulsive? Probably.
READ THE ARTICLE:
A simpler way to save: the 60% solution - MSN Money
Start with saving; the spending will follow - "The 60% Solution"
By MP Dunleavey
It's part budget and part financial philosophy, and it works like this:
* Keep your monthly committed expenses, including taxes, to about 60% of your gross income.
* Save 10% for retirement and 10% for long-term expenses, such as a down payment, new car, major home repair or other big, infrequent purchase.
* Set aside an additional 10% for smaller, irregular expenses, such as a new appliance, minor home and car repairs, or a new battery for your laptop.
* Use the 10% left over for wild, crazy parties (or anything else that strikes your fancy).
The beauty of this system, in theory, is that it covers spending AND saving. But the trouble is, everyone in the group got stressed out about the idea of trying to pare down monthly spending commitments to 60%. That's not surprising, given that some of us were, until recently, spending more than 100% of our incomes and racking up debt.
READ THE ARTICLE:
Start with saving; the spending will follow - MSN Money
It's part budget and part financial philosophy, and it works like this:
* Keep your monthly committed expenses, including taxes, to about 60% of your gross income.
* Save 10% for retirement and 10% for long-term expenses, such as a down payment, new car, major home repair or other big, infrequent purchase.
* Set aside an additional 10% for smaller, irregular expenses, such as a new appliance, minor home and car repairs, or a new battery for your laptop.
* Use the 10% left over for wild, crazy parties (or anything else that strikes your fancy).
The beauty of this system, in theory, is that it covers spending AND saving. But the trouble is, everyone in the group got stressed out about the idea of trying to pare down monthly spending commitments to 60%. That's not surprising, given that some of us were, until recently, spending more than 100% of our incomes and racking up debt.
READ THE ARTICLE:
Start with saving; the spending will follow - MSN Money
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