The economy is never poor for those who know how to control their money. You would be hard pressed to find a fiduciary that will not fully advocate having a solid savings plan. The people with the discipline to build, and follow, a solid savings plan will always prosper over those who do not. Savings is a key to wealth.
There are figures out there that describe the horrific reality of modern American economics. According to a Google Consumer Survey conducted in December 2015, somewhere around 62% of Americans are risking, and/or sacrificing, their happiness by having less than $1,000 in savings,. That’s 200 million people who haven’t mastered their money. They have fewer options in life and more stress. So if you are serious about giving yourself more financial power and reducing your stress levels, then you must get good at saving. It is not that hard, once you get started.
Create A Budget
There are many creative and valid ideas out there for reeling in the spending – the purpose of saving. None of them will work, however, unless you first create a budget. You will want to have a snapshot of where you are with your finances. Once you have this, you can start making decisions.
Have A Goal
It can be small or big, ordinary or eccentric. It just has to be acutely specific and important enough to you to call you into action. Is it to be out of debt? How about a new car? What about that vacation you’ve been wanting? Decide to have it. This will make saving easier.
Stop wasting money in areas that don’t add value to your life. Smoking is a great example of this, and so is eating fast food. You know what you can cut out of your life without diminishing your quality of life. Rate your expenditures by importance and, if you can, get rid of the bottom five. You’ll have to break some habits and start new ones, but what is financial well-being worth to you?
Pay Yourself First
While you are applying the blue line to the non-necessities of life, you’ll want to make sure you add yourself to the list of payees. In fact, you are going to put yourself right there at the top, numero uno, the most important, the first to get paid. Start with at least 10% of your net income. It sounds like a lot, right? Just set this up with an automatic deposit into your savings account coming right out of your check, that way you’ll never miss it.
It is also recommended by many in my field that you set up a long-term and short-term savings plan. The long-term plan is more for retirement and later in life issues (think Roth IRA or 401K). The short term is for that sweet car or that vacation you’re planning. Anthony Robbins has a great book called, “Money: Mastering the Game”. It is a fantastic read for anyone pushing to gain control over their financial health. I highly recommend it.
I welcome you to contact me anytime for any of your financial or real estate needs. Please email me at firstname.lastname@example.org for a consult today to get your life on track and get you in your dream home. Let’s better your family today. Your Power Is Now!
Eric Lawrence Frazier, MBA
President & CEO