Welcome back to "Financial Friday," everyone! 🎉 Today, we’re discussing your savings portion in your budget or financial plan.
 
How much of our budget should we save monthly. This rule advises that you save at least 10% of your net income each month. We will dive into why this rule is so powerful, how to implement it, and some practical tips to ensure you stay on track.
Why Save 10% of Your Net Income? Here are a few reasons:
Building an Emergency Fund:
Life is unpredictable, and unexpected expenses can arise at any time. Having an emergency fund equivalent to three to six months of living expenses provides a financial cushion that helps you avoid debt during crises.
Achieving Financial Goals:
Whether its buying a house, starting a business, or planning for retirement, saving consistently helps you accumulate the necessary funds to achieve these milestones.
Reducing Financial Stress:
Knowing you have savings set aside can significantly reduce financial stress. It gives you peace of mind and a sense of security, allowing you to focus on other aspects of life.
 
How to Implement the 10% Savings Rule
Calculate Your Net Income:
Determine your net income by subtracting taxes and other deductions from your gross income. This is the amount you take home each month. Remember what we talked about week 1 where your money should go. 
Fixed cost should be no more than 50-60% of income.
Investments 10%
Savings 10%
Guiltfree spending aka fund money$$

Set Up Automatic Transfers:
Automate your savings by setting up a direct transfer of 10% of your net income to a savings or investment account. Automation ensures you save consistently without the temptation to spend. This is one of the hardest things for me too.
Track Your Spending:
Use budgeting tools or apps to monitor your spending. Understanding where your money goes helps you identify areas where you can cut back and save more.
Prioritize Saving:
Treat your savings as a non-negotiable expense, similar to paying rent or utilities. Prioritizing saving helps you build the habit and ensures you always allocate 10% of your income to savings.
Practical Tips to Stay on Track
Start Small if Necessary:
If saving 10% seems daunting initially, start with a smaller percentage and gradually increase it. The key is to start somewhere and build the habit. You can always increase the saving percentage based on other things in your plan.
Increase Your Income:
Look for opportunities to boost your income, such as taking on a side hustle, freelancing, or seeking a raise at work. Increased income can make it easier to save more.
Review and Adjust Regularly:
Periodically review your savings goals and progress. Adjust your budget and saving strategies as needed to stay aligned with your financial objectives.
 
The 10% savings rule is a simple yet powerful strategy to help you achieve financial freedom. By consistently saving a portion of your income, you build a strong financial foundation, reduce stress, and set yourself up for long-term success. Start implementing this rule today and watch your financial future transform. Thats it for this week. Now go have a great weekend.

Welcome back to "Financial Friday," everyone! 🎉 Today, we’re diving into the world of fixed costs.
So, what exactly are fixed costs? These are the expenses that keep your home running smoothly and stay the same every month. Ideally, these costs should be no more than 50-60% of your income. Let's break it down with some simple examples:
Rent/Mortgage: This is the amount you pay for your home every month.
Loans: Any monthly payments for things like student loans, car loans, or personal loans.
Insurance: This includes health insurance, car insurance, home insurance, etc.
Subscriptions: Think Netflix, Hulu, or any other monthly services.
Car Fuel: The money you spend on gas each month to keep your car running.
Groceries: The cost of food and household supplies you buy regularly.
Other: This can include anything else you spend money on consistently. For me, it covers Amazon purchases, beauty products, and maintenance for our boat or RV.
By keeping your fixed costs under control, you’ll have more room in your budget for other expenses. Remember, the goal is make your money work for you, not the other way around. Happy budgeting! If you like learning about budgets and financial planning then comment below to get your free discovery call where I can help you learning how to make your money work for you to have more time living your dream life

​🎈 Happy Finance Friday, everyone! Today, we're starting at the very beginning: your mindset. 🧠💡 Today, we're diving into the exciting world of budgets or financial plans. Whether you're just starting out or looking to refine your strategy, we've got you covered with practical steps and essential tips every week. So, grab your notepad, and let's make those financial goals a reality, one Friday at a time! Stay tuned as we unravel the secrets to building a solid financial foundation and navigating your money with confidence. Let's get started! 🚀💰

When it comes to budgeting or making a financial plan, the way we think about money really matters. Think of your budget not as a restriction, but as your personal game plan for success. It's all about seeing it as a tool to help you, not something that limits you.

Stay Positive: Believe that you can manage your money well. It’s all about attitude!
Set Clear Goals: Know what you’re saving for, whether it’s a vacation, a new bike, or just for a rainy day. Having a goal makes sticking to your budget easier.
Be Realistic: Set a budget that makes sense for you. If it’s too tight, you’ll feel squeezed. If it’s too loose, it won’t be effective.
Remember, a good mindset can make budgeting feel less like a chore and more like a challenge you’re ready to win. Let's start this journey with confidence. 😄🚀

This segment introduces the importance of mindset in a light and accessible way, setting your viewers up for a positive journey in financial planning.
Here are some guidelines I follow when it comes to my plan.
Fixed cost should be no more than 50-60% of income.
Investments 10%
Savings 5-10%
Guiltfree spending aka fun money$$
Thats it for this week. now go have a great weekend.
Next week we will build your budget or financial plan.