Who doesn’t want to save money?

Have you thought about saving money by the way you spend it?  What?  Yes, how you spend it each month.  I want to introduce you to an awesome woman – Alexa from LearnVest – and how she has shown thousands of people how to save money by how we spend it each month.  She has a system that she lives by called the 50/20/30 Guideline that she recommends that will help anyone start saving ~almost immediately.

I had the pleasure of being present at one of her lectures at my college and loved the way that she was teaching the young college women at this college how not to rack up a bunch of debt.  She was so energetic and the audience was drinking in everything she had to say.

Now, what is this 50/20/30 guideline?

Well, 50% is for fixed costs (rent, mortgage payments, utilities, car payment, etc.)  You can include things like prescriptions, gym memberships, etc.  This would be 50% of your take-home pay.  This is generous and anything under the 50% is gravy for your savings.

So, next is 20% of your take-home pay which should be used towards important payments that will help your financial future to include things like paying down debt – credit cards, saving for retirement and always having an emergency fund to fall back on. You can also include in this section saving money to put a down payment on a house.

Finally, 30% of your take-home pay should pay toward daily expenses.  These of course will vary each month, like buying clothes, haircuts, eating out, vacations, etc.   This will also include groceries because this is something that will change each month depending on what you want and/or buy.   This is the most flexible category and it doesn’t matter what the money is spent on, just don’t go over your allotted budget each month and remember, anything you don’t spend can go into your 20% pot for saving.

This was a very quick overview of what LearnVest covers in their program.  Do yourself a big favor and head on over to their website and see what they have to offer.  I know that they would love to help you have the financial freedom that everyone strives for.



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