save at least 20% of what i earn monthly

Pre-tax and post-tax. I’m over 20%. Leaving things where they are right now. I need to be able to pay my bills. I may still up the mortgage principal, but other than that I’m good.

For the time being, this is done. :)

Right now I’ve decided I’m adding the additional amount to my mortgage principal. That should bring me up to 20% and also help me get closer to fulfilling the goal of paying of my mortgage – that much sooner. :)

Once I make this change with the mortgage company, I’ll consider this goal complete. Whether it’s in an account or in the equity of a house, it’s a step toward financial security.

I’m currently at 15% between retirement and regular savings, so that means I need to figure out how to manage without another 5%. While I’ve just taken on a new car loan, I may need to be creative and even cut back my phone plan, possibly get rid of cable to make this work. Getting rid of cable will be difficult as that is really my only form of entertainment these days, so I’m holding off on that as long as possible.

What makes my current saving plan work is that I have immediate withdrawals from my paycheck through direct deposit so it happens before I even see the money. If I can manage without the other 5%, I’ll work that out the same way.

Wait—I just realized, that I already save another nearly 2% (1.75% to be exact) than I had calculated – each month when I automatically pay an additional amount to the principal on my mortgage. So I only need to come up with roughly 3% more (3.25% to be exact – and I’ll do my best to be exact). I think I can do this.

For anyone else struggling with this goal, you may want to read “The Automatic Millionaire”. If you have the ability to set up your paycheck with direct deposit and split it between accounts (checking and savings, for example), try to take advantage of that. The less you have to think about it, the better. And somehow when you don’t see the money, you tend to find a way to live without it. This is something I did before I read it, but I’ve still gotten lots of great ideas from this book.