Good morning guys and welcome to Day 21 of the Financial Freedom Challenge! 🙂 As you know today’s task is the direct continuation of yesterday’s one. Did you do everything I said yesterday? If yes, you’re ready to proceed so let’s go!
What’s today’s task?
Well, it’s not a secret. Today’s task is to set up an effective Deposit Schedule.
What is a Deposit Schedule?
It’s simply nothing more than a “warning” on your calendar that scans and reminds you of the monthly bank transfer which, if everything works right, will automatically occur between your first and second bank accounts.
This “warning” will occur on the same day of each month. For instance every 5 of the month.
I can’t tell you on which day you need to set up your monthly transfer because it depends on the day (call it “day X”) on which you receive your main Income. My suggestion is to set it up 3/4 days after day X. Dedicate these 3 or 4 days to pay your monthly fixed expenses, that is the first thing to do when you receive your Income. Then it’s time to save money, and we’re doing it thanks to our monthly and automatic transfer.
So do your math, choose a day X, open your calendar/calendar app/whatever you use to plan your days and write down your Deposit Schedule for the next 12 months.
Another important suggestion: one very good thing is to increase the saving rate over time. If you don’t feel ready to start with an aggressive approach don’t worry.
We’re at the starting point so let’s not exaggerate. Set the first 3 monthly transfers to 5% of your main Income. This is a percentage that almost everyone can afford to save. After these first 3 months reflect about your financial situation. Can you afford to increase your saving rate? I bet you can. Set the next 3 months to a higher percentage, for instance, 7,5%. Then repeat the process.
The ultimate goal is to save 25% of your main Income, but also 20% is an awesome goal.
Creating a Deposit Schedule has two main purposes: be consistent over time and save time.
A brief summary of today’s task of the Financial Freedom Challenge
- Call X the day that occurs 3 or 4 days after the day on which you receive your main Income
- Set up for the day X of every month the monthly bank transfer from your first bank account to the second. Start with a transfer equivalent to 5% of your Income
- Write down on your physical or digital calendar your X days with the relative saving rate
- After the first 3 months think about your financial situation and ask yourself: Can I afford to increase my saving rate for the next months? If the answer is yes, increase it by a little percentage (2% – 2,5%)
- Repeat point 4 every 3 months
- Take the time you need to reach your ultimate goal: saving rate = 25%
This was Day 21 of the Financial Freedom Challenge. Take this step very seriously because it’s one of the most important in the challenge and for your future. If you have any questions about this step, write a comment and I’ll be glad to answer you 🙂
Besides share in the comments your opinion about this step!
Come back tomorrow for Day 22. I’ll be here for you! Remember to follow us on Facebook and Instagram! Share this challenge on your social media: this will keep you motivated during the path, trust me 🙂 If you want direct contact with me (answers, discussions, doubts, advice…) and the other participants, join our Telegram groups (ENG Group, ITA Group).
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