Buster Benson I need more goals.
The 10% rule is a pretty well-known rule for getting control of your finances. Save 10% of every paycheck, and it not only helps you save money, but also helps you gain confidence in your ability to save money. I’m pretty sporadic in my savings, sometimes saving much more, sometimes much less, so I’ve decided to formalize this rule and also to introduce some new rules about donations and charity money (which I currently give almost nothing to).
As of last month, I’ve decided to begin officially saving 10% of my income and giving away another 10%. I found an easy way to use my confusing set of checking and savings accounts, and automatic transfers, and scary balance notifications to make sure I can keep track of all of this. Basically, every paycheck goes into savings. 80% of the paycheck gets transferred into my checking account, and 10% goes into my charity fund, which I have some interesting plans for. Then, by the next paycheck, anything that’s left in my checking account is transferred back into savings, and I bring in a new 80% from the new paycheck. Simple and easy does it.