While working on getting out of debt, I feel it is imperative that one should work on building your EEE fund. Especially if your income can be as volatile as mine. I never put much thought before into how monies are divided, but it seems that this has been foremost on my mind lately.
As I mentioned before, I use a 50/50 split from short-term contract job payments. I put 50% of that income into various savings/planned spending pots. The other 50% is used to supplement this month's spending plan or set aside for next month.
The breakdown would be something like this:
A current contract job earned me $350.00. I split the money 50/50 into 2 sides, savings & spending.
Saving: $175.00
EEE - $77.50 (50%)
RRSP - $35.00 (20%)
XMAS - $35.00 (20%)
FVAC - $ 8.75 ( 5%)
HOME - $ 8.75 ( 5%)
Spending: $175.00
RENT - $61.25 (35%)
TRANS - $26.25 (15%)
FOOD - $43.75 (25%)
DEBT - $26.25 (15%)
ENT - $ 8.75 ( 5%)
MISC - $ 8.75 ( 5%)
This is the method I use to keep things balanced for me. If I had an additional unexpected winfall, then I could use another method for that. It could be a 75/25 split; 75% going to debt repayment and 25% going to fund the EEE fund. It sounds like a great method, but it isn't likely one I am ever going to use. The reason being that I like some amount, however small, going into each of our savings goals. If we save a downpayment for a house by depositing only $8.75 at a time, then so be it.
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