I’ve always been really good, but really bad at money.
The good: I set up an RSP at a pretty young age and even contributed enough to bring it up to $2700 (a big deal when you’re 19 and working p/t retail while paying for school.
The bad: I cancelled my automatic transfers to my RSP that one time I needed to make a big purchase…and never set it back up.
The good: I worked overtime and paid off my credit card after I maxed it out.
The bad: I maxed it out again. And then paid it off. And then maxed it out. And then paid it off. (Repeat until a bank fiasco where they closed off the wrong card right after I closed the other. And then wouldn’t re-activate it.)
The good: I set up a savings plan and put over half my non-bill money aside.
The bad: I spend my usual amount of money and need to dip into my savings to carry me over until the next paycheck.
So here’s the plan.
I need to be more realistic with my money goals to set up successful financial streaks. Pretending to save 50% of my income is just not realistic for me. (Although kudos to Des for managing it!)
My plan is to save 15% of my take home pay. About 40% of that will be into my emergency fund, and the rest is split up into categories like travel, gifts and future car expenses.
That leaves me about 15% for spending money after taking out my expenses.
I totally know that I could be more frugal and save a bit more from the spending money I gave myself, but if there’s anything I’ve learnt about myself, it’s that I cannot go from 0 to 100 real quick. I need time to buld myself up to a winning streak, and going cold turkey on all my spending is not smart. (Just look at my gym habits) Besides, it feels way better to put extra money in at the end of the month instead of taking it out. It might not be an amazing plan, and it might not (definitely won’t) see me to FI early, but it’s just the beginning and that’s worth something all on its own.