The 50% Money Saving Tip

By Keren P. — Published May 09, 2018

The 50% Money Saving Tip

When it comes to saving money, there is only one thing that can make a really significant change in your finances – either go big or go home! But the question is, how big can you actually go – what does ‘BIG’ refer to? 

If you are wondering as to just how much you can cut down on your expenditures, you would be interested in this money-saving method going popular right now which tells you to spend only 50% of what you normally would! Imagine saving half of what you earn – wouldn’t that be awesome! 

The 50% method helps you increase your savings radically in a very short period of time. This can be of great help to people who have huge expenses coming up for them such as a trip or buying a home and paying back a loan. Here’s how you should go about it:

Plan your month’s budget
Before starting out on your go-50 campaign, it would be really helpful if you could set a budget for the various things you usually spend on– clothes, groceries, home decor and so on. This done, slash your budgets by half and see how you could reallocate the new amounts in such a way that your needs are fulfilled, without you having to struggle and scrape. 

1. Find out what you spend most of your money on
Analyze the spending of the last few months and find out where you have spent most of your money. The top three on your list should be your primary target. By managing the budgets on these three main areas, you will see radical changes in your savings. Halve your month’s budgets in these areas if you want to see big changes in your numbers at the end of the month.

2. Find out areas where you save heavily
There are definitely plenty of areas that are made up of pure want and not need. These are the areas where you can make heavy savings. These are areas where cutting back heavily will not make much of a difference in your life, and as such, are huge potential areas to save money. 

 

3. What are your recurring expenditures?

These are the areas that you cannot cut back entirely. These are the costs that come from essentials, such as power. You can, however, try your best to reduce these bills and expenditures drastically. For example, do you really need that light to be switched on for so long? Or the fridge to be plugged in all night? Perhaps by cutting the usage of the facilities by half, you could cut the bill amounts by half too!

Depend on only one source of income
It is not that difficult if you put your head to it! If you are having two sources of income or you and your partner are both earning, try to live on only one income instead of using both. This will not mean you will live an impoverished life but that you will learn how to spend more wisely and consciously. You will learn that if you get rid of all the extravagance and unnecessary expenditures, you can actually lead a simple, fulfilling life!

Life’s not always 50-50!
And that’s alright! The 50-50 ration is just a figure to get you started because spending anything less than half of your income on yourself would be to live a miserly life – and you do not want that! At the same time, it is understandable that sticking to the go-50 rule is hard. That is why, feel free to be flexible with the ratio by setting it to 60-40, 70-30 or even 80-20– as long as you know you are saving each month. 

 

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