Wednesday, October 13, 2010

Planning ahead for income

As I mentioned earlier this month, I will be doing work for a new-to-me company who requires some help here in my hometown. I won't have to travel much, except within my own city to help families that they serve. I will be paid a certain amount of money for every singular contract that I fulfill. Now how to make the most out of everything I make.

I've taken the idea from Gail of 4 Piles of Money, and stretched it a bit to fit my own needs. Instead I have 5 Piles of Money.

25% will go to Business Operating Account and some of that will go to Business Savings
40% will go to our monthly household cashflow
15% will go to our Essential Emergency Expenses Account
10% will go to Planned Spending
10% will go to Retirement Accounts

In this fashion, if I were to earn $500 in a week for contracts, it would be divided like this:

$125 will go to the Business Accounts
$200 will go to household cashflow
$75 will go to EEE Account
$50 will go to Planned Spending Accounts
$50 will to to Retirement Accounts

I have a game plan for the new income, and hopefully I can keep our financial lives on track following this plan.

In other news, our Gail Club Group met again last night. We chatted about where we all are, and what we hope to accomplish over the last remaining months of the year. WE talked about our road trip next month to visit a nearby city's Gail Club, to visit, make new friends, and gain a new perspective on finances. We decided that we were going to look at new ways of inviting others from within our fair city to join us, and hopefully to help others who may be in dire straits with their financial situations. We have learned so much, and it would be good to offer some support and advice to others who may be feeling helpless, they way we once were.

1 comment:

  1. I love your new plan. You'll do great following this method of dividing up your earnings.
    I wish we had an active Gail Club where I live... I'd love to get together with others who are managing their money in a similar style as we are.