Hello everyone!
I wanted to share something pretty radical today and would like your feedback! I came across an interesting concept for saving, although I’m sure it would not have been the first time it has been thought up. The strategy is Saving one check and Living off the other! It reminds me of what Dave Ramsey always says “Live like no one else today, to live like no one else tomorrow!”
So here is how it works, it’s very simple to apply but not so simple to live, but i think it all depends on you.
I read a bout a couple that had learned to manage their accounts together and finally decided that they would try and max their potential retirement plan rather than spend it all today and save a little, like so many others! In doing this they have managed, in the time they have been married, to secure a hefty amount in their retirement accounts! They manage an annual income of about $133,000. So I’m assuming they live off half of that and save the rest. Imagine, a team doing it for what is best for them in the future. I love this! I think having a partner that is will to do this with you is just awesome! You don’t find that around these days do you folks?
In any case, I have personally made it my goal, as a student to save one check and use the other for whatever needs I may have to cover. This will allow me to change a few things and my lifestyle, not that its great as it is! I find pleasure in writing on this blog and perhaps ill be able to do it more often! 
Well, Let me know what you think about this strategy and whether you think you can do it! I challenge you to take a look at your finances and see if it is possible. Come on board and lets do this together. I will be posting up my results.
That brings me to something else I was going to mention, I will be setting up another website blog, a personal finance blog where I hope to sure my financial struggles and my financial upside as well! It will come soon, promise!
May 23rd, 2008 at 6:39 pm
Do you mean live off one months check for 2 months and save every other check? Or do you have two incomes and you will just be living off of one of them? Either way sounds like a very good plan. Hopefully you will have a good chunk of change by the time you graduate (or at least not be in so much debt).
May 23rd, 2008 at 6:45 pm
David, I mean either way depending on who reads the article. I would personally live off every other check and pocket the other and try to pay debts and manage on one check.
Tony
May 23rd, 2008 at 11:23 pm
It depends on how you get paid I think. And also how much debt you have. I personally have been trying to implement this idea. I get paid every 2 weeks. And I reduced my monthly debts to a only major debts, (rent, student loans, car payments, insurance) and some minor debts (phone, direct tv, etc..)
I can cover every monthly expense with my second check of the month, and I use the first to cover day to day living (eating out, gas, etc..)
My findings:
Self control: Can you manage to not spend a lot when you know you have extra money? This is the hardest part for me. Sometimes I have to catch myself before I start splurging needlesly.
May 24th, 2008 at 3:00 am
@ The bill manager
I dont think that was the point. It sounds like you are spending all of your money anyways. You were supposed to be living off of half of it.
May 24th, 2008 at 4:48 am
Just quick question for JM @ Bill Manager, where do you invest some money? Any of that going to interest bearing accounts or funds or 401ks, or roth? Hope so.
Respectfully,
Tony T
May 24th, 2008 at 9:45 am
@David Carter
You’re right in that I’m not living off of one check. But in my case I can’t fully implement this plan. As I said, “I’m trying to implement this idea”, but I’m not quite there yet since some of my 1st check still goes to day to day living. At the moment about 25% of my first check goes to day to day living. I hope to completely be able to live off of one check though.
@Tony,
I have a 401K through the company I work at, I also have buy and sell stock through my sharebuilder.com account. I don’t really keep a savings account since It’s not good for me to have money on a savings account that earns less interest than I pay to say a credit card company. (i’m trying to clear out all my debts first). But I do have an emergency fund which I don’t count as a “savings account”.
June 4th, 2008 at 7:05 am
It’s a nice concept, but the fact that your example couple is earning $133,000 per year is a pretty significant factor. The median income for a 2-person household in my area is about $52,000, which means that a couple can obviously live on a lot less than $133,000…in fact, they could probably live on less than half of that. But what about the couple who both works full time and each makes about $27,000/year (the average income of an adult with only a high school diploma) or even less (minimum wage, full time, only works out to about $15,600 annually)? Not quite so feasible to live on half of that.
June 4th, 2008 at 1:59 pm
Tiffany,
Indeed, in their circumstance it is not easy. But you would have to think of other ways to save money at that point. I will write article regarding just that. Thanks for your comment, it is greatly appreciated!
Respectfully,
Tony Tovar
June 4th, 2008 at 9:09 pm
[...] Tiffany from Rock Stories recently commented on one of my blog entries titled “Save One Check; Live off the Other!” She explained how it would be nearly improbable that a family or even an individual could [...]
July 6th, 2008 at 10:03 am
Great Site. Keep up the great work.