How does your monthly paycheck breakdown look like?
I think it is important to do a breakdown so that you know where the money goes to every month.
We should control how the money is begin spent instead of letting them slipping through our hands unknowingly.
It is vital for financial planning!
From one look, you know where to cut down the expenses in order to increase your savings.
My insurance premiums used to be 21%, I managed to cut it down to 12% after taking out some non-essential policies.
I took some of the cash savings together with the savings on insurance premiums to setup a RSP (Regular Savings Plan) program for “lazy man” investment. This investment is for long-term, so if possible, I would not want to touch it for any use until I retire.
I tried to maintain cash savings at 25%. It is always good to have some cash on hand for raining days! The money can also be used for holiday trips and buying of big ticket items! (i just bought a nokia e75, only after I debated with myself for a long while!)
My Personal Expenses currently stands at 14%, I am trying to cut it down but its hard :P
So, Control Your Money!
|Regular Savings Plan||25%|
|Contributions to Home||12%|