Updated: Aug 5
How many times have you heard someone say, I don’t make enough money to save, I’m just barely making ends meet. Over the years, I’ve discovered that not saving anything over a period of time, is actually a choice that you have made. I have also discovered, that no matter the financial hardship that I’ve been in, bills always get paid and food got put on the table. Before you think, well if this is the case, how bad have things been for me. Well, I will tell you, I’ve lived out of my car for a couple of weeks. I’ve almost had to declare bankruptcy, I’ve been so far in debt I rented a room for almost 3 years, just to be able to eat and climb out of debt, and I’ve had creditors calling numerous times a week.
Okay, so what about this savings thing then. What I learned, was treat the act of saving, just like a bill payment, so instead of paying a bill, you are paying yourself. Set an amount that you would like to achieve, and make payments to achieve it, and don’t skip a payment. Once you have reached that goal, repeat the process. You will be surprised at how, over time, a small amount will add up. Just like a bill payment, eventually, the bill will be paid off. Eventually, your savings will build up. It won’t happen overnight, but it will happen. No matter what, 2 years will go by, so would you like to have money in the bank, or still live pay to pay
Have you ever heard the saying Pay yourself first? Just like what I said above, but with this technique, every amount that comes into the household you take a certain percentage and save it, a good example of this is 10%, so for every $1000 that comes into the household, $100 gets put into savings. Make this a priority before anything else other than paying the rent/mortgage and food
One technique that I have used many times over the years. Its called forced savings. What is this? Basically, you put yourself in a position, where you are forced to save. This could be from having a bank account debited automatically, to taking out a small loan that you have to pay back. Also, if your workplace offers a stock plan, or savings bond plan, or any plan where the funds are deducted from your pay. Take advantage of it (During the good times, using this technique, I’ve had deducted over 20% of my gross pay). You will be amazed at how quickly you will adapt to a slightly lesser income. Another thing that I do, Every time I purchased something, I’ve rounded up the purchase (there are apps that you can get that will do this automatically) if paying by a card. When paying cash, I would take all of my quarters, and 1 and 2 dollars, and set them aside in a jar. When I started doing this, and I told people, people laughed at me for doing this, saying it will never add up, and why, it’s such a small amount. Well after just doing this for 1 year. This technique paid for my first Caribbean all-inclusive vacation, and I paid cash, owe what a feeling it was to be able to do this.
In closing on this blog, remember it’s not what you make, its what you do with what you make that matters, its also not what you make, its what you get to keep that’s important. And taking a small amount, can over time, add up to a larger amount. It will take time, disciple, and restraint. The most important thing though is to take the first step, and decide to start saving, and set aside the first dollar, and just do it, and commit to the act of saving.
Sacrificing Now to Save, Will be A Future Filled with Freedom and Options