SAVING, IT’S ALWAYS IN STYLE
Money has always been a sensitive subject, but it is an important topic to be discussed.
It’s easy to say don’t live paycheck to paycheck, but unfortunately that is the reality of so many. Actually, in these unprecedented times, people are just grateful to have a paycheck.
We are very much a consumer society and don’t get me wrong I like to consume just as much, if not more, as anyone. But because of the times it is very important to save, more than ever.
You don’t have to be stressed out and have 3-6 months of your monthly expenses saved right off the bat. Of course, that is the ultimate goal and more. Like any goal in life, it takes perseverance and focus. We find it so easy, at least I do, to put money aside for that purse I have to have. I will sacrifice my daily latte from my favorite coffee house to get that “ultimate” bag.
Take that same energy and direct it towards savings. Knock that large lofty goal down to smaller goals, like $10-$20 a week, and just see how quickly you will achieve your ultimate goal.
I started using cash for everything instead of my credit card or debit card. It’s a psychological trick…when I see how fast $100 cash goes it makes me think twice about my purchase so I can keep as much of my $100. One thing that works for me is that any change I receive from a purchase I put aside in an envelope, not in my wallet. And that change, $1 here $5 there, adds up quickly over time.
I like to make it a competition with myself. I saved $10 this week, next week I’m going to do $15. The idea is to make it fun, not a chore, because who wants to do chores, BUT everyone likes to have fun!
Also, there are many free tools available to help you achieve your financial goals. I use an online savings account. I do this for a couple of reasons: first, interest rates are higher than conventional banks and second, it’s not as easy to access it to spend on that “ultimate” bag. There are quite a few to choose from; Ally Bank, Barclays, and Capital One are just a few.
I love tools and gadgets to help me with my financial goals. Below are a few that I like; the beauty is there are options to choose what suits you best.
Mint.com is a great, free way to set up and track a monthly budget and it syncs with your bank and credit card accounts to track transactions automatically.
Envelopes: I love this system because it’s low tech and easy. You set a budget and categories and use cash for each category of your budget and keep it tucked away in your envelopes. This system makes it easy to see how much money is available for each category and it helps you to stop overspending. And I like to take the money left over from my categories and add it to my savings envelope.
Goodbudget: This software is like the envelope system and for people that don’t want to have physical envelopes. Goodbudget lets you fund virtual envelopes that are used to track expenses and sync and share budget information.
Spreadsheets: Microsoft Excel and Google Sheets offer free budget templates. These are highly customizable to track income and expenses.
The point is to be economically empowered, because 40% of Americans have less than $400 in savings. And an unexpected expense could profoundly disrupt their lives. We want to move forward and these tips are so doable and will help move us in that direction.
