Thursday, 30 June 2016

The Rambling Person Super Simple Saving Scheme

Damn I love alliteration. Anyway, I recently decided to try and take more control of my spending and finances. Before now I've always had a pretty simple goal in mind when it comes to money. I try and have at least 100 x the month in my bank account at the end of each month. So £700 at the end of July, for example. Things changed a little recently though and I have a new scheme now.

I don't know whether he intended me to hear or not but I heard my dad talking with who I presume was my mother, and he mentioned that even though I'm earning money now he doesn't really see any of it. It's a fair point and one I wish he'd brought up with me himself. I earn more than enough money now to be sending some rent/board his way. I never really had a problem with the idea either. The problem wasn't what I was getting paid, but rather how I was being paid.

Ya see, I don't earn a paycheck. In fact it takes me about three to four weeks to even see the money I get for a job. I do a job on Fiverr and then it takes three days for the job to be automatically marked as complete (though the client can mark it as complete themselves) and then it takes two weeks for the payment to process. The money is then added to the amount of money I can withdraw. This money goes to PayPal and withdrawals from PayPal take a further two days to fully process.

Throw in that I have to wait until I have a decent amount of money and it can take a little longer. Actually, because PayPal charge a conversion fee for converting from dollars to pounds, it's in my best interest to withdraw lots of smaller amounts rather than one larger amount. I could have the money transferred to my bank straight from Fiverr but the service they use for that asks for a 10% cut and I'm not paying a 10% fee on top of the 20% fee that Fiverr has. I'd go solo but I have my misgivings about that, which I shall discuss at a later date.

So I decided to budget for the money I would have, rather than the money I do have. I came up with a pretty effective budget that I feels will fit neatly into my current lifestyle. My budget plan is pretty simple really; I'll leave £100 in the bank as my personal spending money for that month, I'll send my dad £100 in board/rent, and I'll put £100 in my savings each month, with an extra £100-200 being left in the bank account for taxation purposes. I'm almost at the point where I will have to pay taxes and I would have to pay £200 per £1000 I earn. Anything left over is essentially free cash but will likely be left there for taxing and to make me feel better about how much money I have in my account.

Well this has been long and boring. Thank you for your time.

4 comments:

  1. I wish my household finances were that simple. Makes my head spin sometimes.

    ReplyDelete
  2. The slow transfer of Fiverr money to actual bank account money wouldn't matter if you've been earning with them for at least 3-4 weeks already? If you can just keep the flow coming, then does it really matter if it's late or not?
    Sounds like a solid plan regardless. Now stick to it! ;D

    ReplyDelete
  3. It sounds like a better, more well-considered plan than most people have, although it's a shame that so many people are taking a cut from what you make ebefore and after you see it.

    It takes time for it to start adding up.

    ReplyDelete

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