TIP #3 - Put 20% of Excess Money Toward Your Financial Goals

Good morning!

Grab your cortado and enjoy.

This is tip #3 of nine tips I’m sharing over the next nine weeks. I hope you find something useful!

I love extra money!

And who doesn’t love it?

Whether it’s a bonus, extra paychecks, inheritances, tax refunds, or selling items around the house, money that isn’t part of our normal paychecks always make me smile.

But before I do anything else with the money, I automatically put 20% of it toward my financial goals.

In my early 30s that was toward my debt.

In my mid-30s that was toward a gap year.

And in the past few years, it’s been toward Coast FIRE.

No matter where the extra money came from, I put 20% toward my goals without thinking.

The remainder was split up several ways, and could include additional amounts toward my financial goals - but 20% of it was always taken out.

It’s a habit and it works.

TIP #3 - Put 20% of Excess Money Toward Your Financial Goals.

It’s a built-in funnel for your financial goals - emergency fund, debt, investments, and retirement.

20% isn’t always a lot of dollars, but every little bit speeds up achieving your goals.

You can set aside more but use 20% as a minimum.

Did you receive a tax refund? Put 20% toward your goals.

Did you receive an extra paycheck this month? Put 20% toward your goals.

Did you receive a bonus this year? Put 20% toward your goals.

Make it a default - a habit - and you’ll be surprised how quickly it stacks up.

In the next 30 minutes…

Think about any excess money that you may come across in the next few months and set a reminder on your phone to automatically transfer 20% of it to your financial goals.

And if that only takes 5 minutes, spend the rest of the 30 minutes thinking about your goals. (It always gets me excited!)

P.S. it’s not too late if you haven’t spent all of your tax refunds yet!!

Remember, intentional money equals intentional life.

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I hope you all have an amazing week!

Quinn