I was thinking of a simple but innovative idea on saving money by calculating your savings based on the rental fee. This is because most people find it hard to save and live from paycheck to the next. I am proposing that one can pay a certain amount of cash to the landlord (or to a fund) which is a percentage of the rent they pay for example, 25%. This amount will accumulate over time. It can them be used to offset rents during hard times, set up a business or even enter into a mortgage plan.
This is a good idea. I think I actually found your post at the right moment because this is one of the things I need to read right now - a good advice on money. Saving as though you are paying rent is a good way of motivating yourself to put away a specific percentage of your monthly income for future use or investment purposes.
I don't see why there needs to be some sort of special fund for this. The idea of saving X amount per month is of course great, it's the easiest way to save money. So just do it like everyone else, get a second bank account (that you don't use for anything except savings) and make an automatic monthly transfer of X dollars (or whatever currency you are using) into that account.
Do you mean to say that the tenant will be paying more on top of the agreed rent for a savings fund? I don't think that would sit well with the tenants. And even for me, I wouldn't agree to that arrangement for the landlord to keep my savings for me. I would rather open a bank account for that purpose. Actually, I have 4 bank accounts with each for a purpose of its own. Like one account is for the house expenses such as food, utilities, etc. I would be more comfortable that way than forcing myself to save with the help of the landlord. Pardon me if I got it wrong.
Sounds like a good way to save some money. Saving could also be quite easy if someone deposited 10 or 20% of money they earn in a savings account regardless of what they earn and make cuts in the budget so the money that's left will get them through the month. Most people make the mistake of budgeting first then saving. Save first then budget. That will guarantee you some savings.
I had a colleague who would borrow money from the multi-purpose loan of the office. She would then deposit the proceeds to the bank and use that to pay the installments of what she would buy, mostly appliances. But when I told her to make a computation, she realized that she has been paying double for the installments because the loan has an interest and the installments have an interest as well. It is best if she used the loan to pay her purchase in full.
The only issue I can see here is the pattern of rent becoming a greater and greater share of household incomes. Could people afford this savings plan and would they want to? Lets assume you had children, surely any spare money would go towards doing things as a family?
I agree with you the rental income becomes so greater and greater and also give a better family backup. Thanks
