If you are one of the millions of individuals trying to build wealth that last for generations, you are also one of those people looking to save additional funds every month. As I get closer to 30 years of age I realize that I need to have more money in my saving account. I’m no longer a teen or young adult who can depend on her parents to fund her lifestyle or take care of life expectancies such as new car, wedding, down-payment on a house, fix my washer and dryer, or other things that happen when you become a real adult.
How do you feel about your finances? Are you concerned about them or how they will look like in a month or a year from now? Most Americans live paycheck to paycheck. That means a good majority of people are one paycheck away from being homeless. Have you considered that you might be homeless next month if you don’t take your finances serious? Make a yearly, monthly, and weekly plan for your finances. I make sure to check my bank accounts every day. This helps me keep track of my money. In addition to balancing my checkbook. On top of, looking over my Go Daddy Bookkeeping almost every other day. Don’t create an obsession over money, establish a healthy relationship with your money.
Too many people are passive when it comes to their finances, until something horrible happens that opens their eyes. Last year, I had a client who experienced a life changing emergency. One of the things we discussed was her having an emergency fund for her and her family. Her emergency fund would cover her and her kids needs alleviating any potential stress. If you are currently in the process of paying off your debt, I personally suggest having $1,000-$3,000 in emergency funds. If you are single you can get away with less. Most emergencies run around the $1,000 mark. Cover your basis.
I have mentioned this before in the How To Automate Your Personal Savings article. This is a really great way to save money without having to think about it. If you want to save an additional $3,000 this year, every month you would have to place $250 into your savings account. The best way for this to occur is to remove the option of being able to obtain your money immediately. I suggest opening an online bank account that has high interest rates.
Live on A Budget
For some reason the word budget gets a bad wrap amongst spenders of the world. However, if you really live on a budget you will save thousands of dollars a year. You are no longer frivolously spending money on useless things. Go over the past year of your expenses. Place everything in a category from your food purchases to nail appointments. Now see how you are overspending from the income you make. Most Americans, over spend by using credit cards to cover cost. Now fix your budget to where you are actually living off of 80% your monthly income. It’s best to live below your means not right on track with them. Operate in this budget. If you have money left over from the current month you can add that to the next month.
Cutback On The Unnecessary
In 2015, do you really need cable with options such as Netflix, Hulu, or Amazon Prime? Do you really need a Venti Caramel Frappuccino with extra whip cream and sauce everyday. Chances are low. You don’t need a majority of the stuff you buy. Time to cut back on unnecessary spending. This is where your money is really going. Look back at your budget after your household bills, insurance, car, food, and things of that nature are paid. Cancel the five new pairs of shoes you were planning on buying and add that unused money to your savings account.
Remove Triggers From Your Life
Target is my trigger. It’s that simple for me. Heck, this is a trigger for most women. We will walk into Target only needing razors that are $5 and spend $300 on items we don’t need. If you know that you generally spend too much money when you go places remove them from your life momentarily.
How are you going to use these ways to save an additional $3,000 this year for yourself and your business?
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