Week 33
Are you saving your money?
The biggest detriment to our retirement is us. We either justify wasteful spending or just blow it making stupid decisions. Every once in a while though (not as spread out as we might wish) we have an actual emergency. The worst thing we can do is not be prepared for these little emergencies. To protect us from this we need a safety account. Back in our PrePare section we had you fill out a form reminding you where you have everything. Time to put that thing to use. Today you are going to establish your safety account. This account will give you confidence to get saving for the long term because you’ll know you have money stuck away for the short term emergencies.
Having breaks planned will also help, so we also advise you to start a vacation fund. Vacations are more expensive and less enjoyable when we have to pay interest on them, so instead lets get you started on two separate accounts today.
Having breaks planned will also help, so we also advise you to start a vacation fund. Vacations are more expensive and less enjoyable when we have to pay interest on them, so instead lets get you started on two separate accounts today.
Homework:
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O - Set up a bank account where you can save at least $900 dollars as an “only use in case of emergency” fund. If you have the funds in other accounts, just transfer them into this account. If not, and you have to save up, start doing so. This is super important to your financial success.
O - Set aside $300 for emergencies, in cash, in a safe that is both water and fire-proof. This is just in case you need access immediately. That should make $1200 total that you have saved for emergencies. O - Look back at week 10 for money saving ideas to get your savings account up there quickly. O - Decide what your next vacation will be. It can be an inexpensive quick getaway or a big fancy world traveling event, but get it planned so you have something to save for. O - Set up your vacation account, so you can get excited for that break. This is the best way we know to recharge and stay excited about life. |
Extra Credit:
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O - Once you have your $1200 saved and stashed away it’s time to build it up to a good 3 month supply of safety. Take your form from week 8 and see what your monthly expenses are. Now carefully start putting away a little each month towards this safety net. Be patient. This will get rid of more stress than anything else we know.
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