As a reminder, the 30 Be Intentional challenges this month are designed to get you on the right foot, the right track and give you energy, efficiency and organization which will propel you into a life that is able to develop an overall financially smart, happy and frugal home.
We have 2 more baby steps under the budget category of our Be Intentional Baby Steps to help you get those 5 areas on track!
Now that we have talked about debt and also reducing our spending to reach financial goals, the second part is increasing income a little bit each month too!
Baby Step #16
Write Down Your Extra Income Monthly Goals (Using 2% Rule)
First, EVERYONE has the chance the ability to make extra income if you really want to. Whether you spend 1-hour per month or many hours, don’t think that your situation prevents you or someone in your family to earn extra income.
Again, what are we talking about with this 2%? Well, we have mentioned the 2% cut a few times in various blog posts here, but for the most clear perspective, we suggest you read about our 2×2 plan HERE which is what we used to pay off our over $100,000 consumer debt and what we use today to help us continue to reach our goals.
So we want to help propel you into reaching your financial goals. But we want to do this incrementally so that you don’t overwhelm yourself and so that it becomes a lifestyle.
After your are finished reading those posts (no need to restate them here) come on back here and print off this form (there are 3 months on each form, so print off 4 to plan for the year).
First, how do you figure out what the 2% income increase is? Well, we all have different types of jobs, schedules and budgets and so we recommend choosing one of these ways to calculate what your extra 2% income would be:
1. If the main income in the household is salary based, you can also calculate your increase on your take-home pay, which is hopefully higher than your expenses 🙂 Let’s say you bring home $3,500 per month, then your 2% increase would be $70 ($3,500 x .02 = $70).
2. If you have varied/commission based income then you can calculate your 2% on your actual bills and living expenses to set your goal. If you spent $2,800 in January between bills/living expenses (debt payments not included) then set a goal to increase your income by $56 this month, etc.
3. If you have varied/commission based income then you can calculate your 2% by looking at what you made this month last year. Let’s say last February, you made $4,000, set a goal to make an extra $80 each month this year.
4. Finally, no matter how you earn your income, one last way to choose how to set your 2% extra income goal, take your take home pay from last year (whether salary or varied income) and divide it by 12. Then calculate 2% of that. For example, let’s say that last year, you made a total of $50,000, your 2% goal increase each month this year is $83 more per month. ($50,000/12 x.02 = $83.33 and round to nearest dollar).
Choose whichever method makes the most sense for your family!
This is also a fantastic learning, growth and responsibility task for children and teens!
Now what we are saying is to add that each month. So the first month is $60, second month is $120, etc. these are goals that you are setting and some months you will far exceed the 2% and other months you will come short. But the goal is to do something and you will see lots of amazing progress towards your financial goals!
The next baby step coming next week is to brain-storm ideas on making extra income. We have lot of sources on our site for this too. But for now, just fill these downloads out so that you can catch a vision for what the goals are!
It shouldn’t take you long to set your money making goals – have fun!!
|<== Download your printable Extra Income Monthly Goals Plan HERE|
One final thing….. we also have a Facebook Group where you can engage in discussions, receive encouragement and talk to others that are participating in the challenges too for more ideas! Head to the Be Intentional with The Thrifty Couple Facebook Page HERE and ask to join us there! You can also invite friends and spouses too!