Well this post isn't about income, but what you do with it. The multiple streams principle can be applied to saving as well.
It's important for everyone to put money aside for rainy days/future plans/etc. Everyone, no matter what you bring in and what you spend and pay in expenses, can save SOMETHING. If you can even save only five dollars a week, great! It's putting SOMETHING away and doing it periodically. You must stick with it.
THEN FORGET ABOUT IT. Your savings should not tempt you, because you don't have it ;)
Pretend you don't have it.
If you can afford it, having multiple spots to stick cash is a great way to diversify your savings. Whether in a lockbox under your bed or in a separate bank account, you can set different rules for each spot on to how you contribute to it.
I probably go a little overboard but saving money becomes fun once you find a good way to do it. With online banking nowadays, its even easier.
1. Immediately after getting paid, I move 5% of each check to a growth account.
2. I withdrawal a certain set percentage of one check and put it in a personal lockbox.
3. Any other checks get 50% withdrawn and put into the lockbox.
4. The remaining fifty percent gets split, putting half in a reserve account.
5. Periodically, at the end of a set time period I put a set percentage of the lockbox savings into a safe.
6. All pocket change goes into the lockbox.
7. Before a pocketful of change goes into the lockbox, the biggest coin and smallest coin from the pocketful go into a jar.
This is fun for me, but I'm not saying anyone has to go this nuts. What's important is that you ARE saving SOMETHING.
A few years ago I saw a image on reddit about a guy who saved every five dollar bill he got over a period and it added up quickly. I thought it was a great idea and started doing it. Over time, my savings method changed and evolved to what I have now.
That is what I wanted to hopefully spark with this post. I had no savings method until I came across one guys method and got the idea from him. Hopefully, I've inspired you to try out one these methods and it leads to your own effective method and BIG savings!
As always, please comment, share, put in a lockbox, safe, whatevs!
Shema Humata: Tass Sheshco