hi MP friends it has been a long time that i didn t talk with you i hope that i meet new friends :D salut les amis , il a été longtemps que je n ai pas parler avec vous hola amigos , ha sido mucho tiempo que yo no t hablo contigo :D :D
Julia I would split the money into parts.
1. 50% goes into long term savings (say 5 year CD)
2. 10% to a charity or church
3. 20% to short term savings (things you'll need in year)
4. 20% to spend on myself.
Of the 20% I plan to blow, I don't just run out and buy the first thing. I set the money aside and make a list. I spend a few weeks adding to that list. At the end of month, I look at the list and realize I spent the money 5 times over. I decide from that list what I want MOST. It doesn't have to be sensible, just something I really want. Then I spend the money guilt free.
11 years ago
Julia short term/emergency fund ... so when the car breaks down or an unexpected bill appears, you aren't cash desperate.
Long term ... because some day you will want BIG things, and using the power of compounding interest and time means that when you need a down payment for a house, wha-la, you have been saving for it.