On average, new Financial Zen Members have $30,000 in “leaky boat money”.
That’s money in their financial plan that’s unaccounted for.
It’s either being saved or spent. We don’t know.
For our projections, we assume it’s being spent…
…but our goal is to turn it into savings.
And The Savings Faucet Framework is how we turn it into savings.
It’s very simple.
The Savings Faucet Framework:
1) Turn on the faucet: Set up a monthly automatic transfer into your savings or brokerage account
2) Turn up the faucet: Increase the monthly transfer amount every 90 days
3) Keep turning up the faucet: Continue to increase the amount until it overflows…as in you need to tap
your Emergency Fund
4) Turn down the faucet just a smidge: Decrease the monthly transfer to the previous quarter
Voila!
You have found your ideal savings rate without having to change your lifestyle!
