A Financial Experiment for a Profitable School Year

The school year has started. Though different schools have different school opening--most have started in June; others, in July; still others, this August yet.

Different challenges face the schools this year. (Not surprising: every year is a challenge.) And teachers, being the frontlines of every educational system, face the bulk of such challenge.

So, another challenge wouldn’t be any more daunting to teachers. But I would like to call this an experiment. An experiment on the self-discipline and economics.

Challenges of this nature usually trends during the new years. But since we are teachers, let us begin this experiment on the new school year.

There are three phases of the experiment. You choose which one you think best suits your level of finances and discipline.  But whichever one you choose, the end will be profitable.

The first one goes like this: every payday, keep any amount aside. Make sure that you set aside the same amount every time.

paydays		savings	cumulative amount
July	15	500	500
	30	500	1000
August	15	500	1500
	30	500	2000
September	15	500	2500
	30	500	3000
October	15	500	3500
	30	500	4000
November	15	500	4500
	30	500	5000
December	15	500	5500
	30	500	6000
January, 2016	15	500	6500
	30	500	7000
February	15	500	7500
	30	500	8000
March	15	500	8500
	30	500	9000
April	15	500	9500
	30	500	10000

The second goes: set aside a specific amount on the first payday. Then every payday, increase the amount of cash you set aside by first amount.

Something like this:

paydays		savings	cumulative amount
July	15	100	100
	30	200	300
August	15	300	600
	30	400	1000
September	15	500	1500
	30	600	2100
October	15	700	2800
	30	800	3600
November	15	900	4500
	30	1000	5500
December	15	1100	6600
	30	1200	7800
January, 2016	15	1300	9100
	30	1400	10500
February	15	1500	12000
	30	1600	13600
March	15	1700	15300
	30	1800	17100
April	15	1900	19000
	30	2000	21000

Or this phase can be done the other way around: we start with the big amount first and then decrease the amount as time goes by. Something like this:

paydays		savings	commulative amount
July	15	2000	2000
	30	1900	3900
August	15	1800	5700
	30	1700	7400
September	15	1600	9000
	30	1500	10500
October	15	1400	11900
	30	1300	13200
November	15	1200	14400
	30	1100	15500
December	15	1000	16500
	30	900	17400
January, 2016	15	800	18200
	30	700	18900
February	15	600	19500
	30	500	20000
March	15	400	20400
	30	300	20700
April	15	200	20900
	30	100	21000

The third one is a little more challenging: double the previous amount you set aside every payday. More like this:

paydays		savings	cumulative amount
July	15	50	50
	30	100	150
August	15	200	350
	30	400	750
September	15	800	1550
	30	1600	3150
October	15	3200	6350
	30	6400	12750
November	15	12800	25550
	30	25600	51150
December	15	51200	102350
	30	102400	204750
January,	15	204800	409550
2016	30	409600	819150
February	15	819200	1638350
	30	1638400	3276750
March	15	3276800	6553550
	30	6553600	13107150
April	15	13107200	26214350
	30	26214400	52428750

So, you see, from the charts, the more challenging the experiment is, the more the profit is, too. No pressure, though. You just choose the phase of the experiment you want to try, and stick with it until summer next year.

Good luck. And have fun saving.