12 November 2013

Do You Know How to Save up Your Money?

I have always enjoyed keeping track of my finance to the dot. I started this habit when I earned my first paycheck during my first part time job. It's simple and organized. It's never too late to keep track of your earnings and spending. The earlier you start, the better off you will be. Book keeping can be surprisingly simple and efficient.


For Job: 
Create an Excel name: [Job] Salary

In there, you are going to create on the horizontal columns the following: 
  1. The date your paycheck starts
  2. The date your paycheck ends
  3. Payment Date
  4. Rate/Hour (if you are minimum/fixed wage, just drag down the tab)
  5. Hours worked
  6. [4 * 5] 
  7. Vacation pay rate
  8. Vacation pay (it's written on your pay)
  9. Gross income = [6 + 8]
  10. Tax with (simpler when you are doing your income tax next year)
  11. Total deductions (if you pay provincial and federal tax, sum them up)
  12. Net pay = [9 - 11]
Click to enlarge
Trust me. You just have to do this once and you can copy paste this for your next job.

Then of course, you should allocate yourself about 10-20% of your salary to PLAY.
By that, I mean to truly relax yourself. You work hard. You deserve some rest. It doesn't include food, necessity. It's an amount just for you to be happy doing things you like. It could be like treating yourself to spa, go to amusement part, buy fashionable wears...etc.

Create another separate column called "Amount allocated for PLAY (10%) per paycheck.
= 12 * 10%
That is the amount you can spend only. 
If you want, at the bottom of this column, you can put the sum of the amount you spend on PLAY.

You can also dedicate another column for travelling. I allocate another 10% of my paycheck to save up for my future travelling expenses. You can allocate more but 30% should be the max. Don't forget you still have a 10% of "Play". And you still need to save up for future expenses. 


This is my simple trick to be financially organized when it comes to SALARY SAVING. 
I have other methods of keeping track of my money which I will post them in other posts. The earlier you start being financially organized, the better. You won't feel so overwhelmed when you wonder why you are always poor or why your salary is not consistent. So I hope this post will help you! Let me know of your own book keeping habit. 

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