I have to admit I’ve become very bad at managing my personal finances. I used to be the best saver. But the more money I’ve earned, the more I’ve spent! Your lifestyle definitely expands with your income, and your ‘necessary expenses’ grow to things that weren’t so necessary in the past.

But I’m getting back on track! The most important thing is the cliche “pay yourself first”. It’s what our parents used to always tell us, and it definitely works. Maybe they just didn’t explain it well enough or maybe we didn’t want to hear their advice. But re-reading The Richest Man in Babylon recently, I’ve committed to ‘the 10 % rule’.

Every time you get paid, put 10% away and don’t touch it. If you feel like you’re already living paycheck to paycheck, you might think this is impossible. But what you’ll find that if that 10% is gone, you’ll still survive on the other 90%. If it’s not there, you won’t spend it. If this is truly impossible, start with 5% or even 1% and commit to it. Then when you reduce you expenses, bump that up each pay cycle until you get to 10%.

I’ve made this 10% transaction automatic. I changed my pay instructions so that that 10% automatically goes in to a different account. I’ve just had my third pay go in since instating this rule and it feels great! It’s good to see those savings sitting there again and knowing I won’t spend them. As I said, I used to be a really good saver. I’ve lost my way a bit but I’m getting back under control!