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How many people can honestly say at the end of the year, they actually have money saved up. I'm not talking about $200 left over from paying your bills, i;m talking about thousands of dollars. Well, I for one have reached the thousands mark, but for some reason I end up dipping into it. So I figured out a way to have a savings, a bill fund and an expense fund. Let's dive into this.
Saving Comes Before Spending always. A very well known billionaire told the world in an interview to take some money and put it away. Whatever that's left over after paying bills and such is now your spending money. Once that spending money is gone, it's gone. Your are now broke and in no way allowed to touch that saved money. So spend wisely. Emergency Money is an absolute must in these days and times. It's especially important for millions without health insurance and/or low income families. An emergency fund consists of at least $500. It doesn't sound like a lot. It surely doesn't seem like enough, but when push comes to shove, $500 will definitely help. Feel more than free to exceed this amount, you know, for emergencies. Make A Budget with pen and paper. I know it's a pain in the butt to sit down and write out all your bills and compare it to your income and figure out how and what your going to do with every dime of your money. If your not going to do it, who will? Most people just walk around running the numbers through their head and some do a pretty good job. Until they forget about an upcoming expense and now they have to spend money they didn't budget on. Write down every single expense you have from major bills all the way down to a snack fund and miscellaneous change. Plan on how much your going to put away and stick to it. Deny Impulse Shopping. One of the worst things you can do in the saving money game is impulse shopping. Marketing and advertising of products on tv, online, or just looking at something in a store window with excess money in your pocket can lead to buying things you don't need. Basically wasting money. Impulse buying is like excessive eating. How many of you have passed through the kitchen and just grabbed something to eat, just because you could. You may not even be hungry, but you see some of your favorite food and you eat it. The exact same principle. You refrain from impulse shopping and put that money away instead, you will be well on your way.
Set A Weekly Savings Goal. I once had an old shoe box that I used as my own personalize savings account. I was bartending and after every shift, I would put all my $1 and $5 bills in that box, without fail. At the end of the first week, I was around $100. By the end of the month I was at $350. By the end of six months, I was at $1800. The key was just putting the money in the box. I didn't go in the box and count it everyday or make plans for that money. It was money I had to keep reminding myself doesn't exist. These day I use an automated savings and investing system called Acorns. All you do it set a certain amount to come out of your bank account every week and it rounds up all your spare change to the dollar on every sale. So, you can set $5 - $999,999 to be taken out of your account every week. Then, every time you used your bank card, for a sale such as $10.49, Acorns will pull out $.51 from your account and stack up each transactions spare change until it reaches $5 and add that to your savings. I have been using Acorns for two years now and had to dip into a few times. It's also cook because when you withdraw, the money hits your account in less than a week. Did I mention Acorns also invests your spare change into the stock market. It's spare change, why not give it a shot. This is what round ups and spare change can look like in a few months.
At the end of the day, if you don't have to spend it, DON'T!!! lol
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