Here’s how reader Andy Alt saves his money while still rewarding himself:
Roughly 65% of the money I make goes directly to a savings account (the other 35% goes to rent, health insurance, cell phone bills, gas, auto insurance & food). After I take care of the necessities, I tell myself that for every $10,000 I save (usually takes 2-3 months) I allow myself to buy something cool that I want around the $1000 range. Since summer, I bought a Macbook with 4GB ram, a 1966 Fender Pro Reverb amp and am ready to make another purchase (perhaps a scooter or used motorcycle) once I hit my mark again.
This also reduces the amount of times I feel disappointed every time a new version of whatever it is comes out. For all of those in-between times, I do a little something fun every week– a good dinner with my girlfriend, a concert, or last night, a ticket to attend a Q&A with the cast of Scrubs… I can’t tell you how many friends I have that squander their entire paychecks every other week on something that I see tangled up in a corner the next time I come over.
Frugality with intermittent bouts of predefined splurging – we like it! Obviously Andy is making some good money, but the same principles can apply even if you make less, just adjust the numbers downwards to fit your personal finance situation.
How do you save money and stay motivated? Share your thoughts in the comments.