Seems like everyone’s having a hard time ensuring that their finances are as they should be, these days. Even the middle class is stuck in a rut, with many complaining about the cost of living, high food prices, the dent on the pocket after visiting the gas station and the harsh reality that wages are not being increased.
Here’s today’s Power TIP! There’s always something to be done, to rectify the situation. Let’s work together to find solutions, rather than focus on the problem.
Here are 3 tips we encourage you to try, as you seek out financial freedom:
Always pay yourself first
What do you consider to be an “important bill”? Your mortgage/rent? Your car payment? Insurance? Of course, these are all bills that absolutely must be paid each and every month, but what about the bill of YOU? Aren’t you important?
Growing your savings is so very important for your financial future and you need to make this a priority. Do so by treating your savings as one of those “important bills” that absolutely must be paid each month. Ideally, it should be the very first “bill” you pay so that your brain knows that this bill is important. To make it easy on yourself, set up an automatic withdrawal from your bank account each month (or week), so that a pre-determined amount of cash goes into your savings account without you having to lift a finger.
2. It doesn’t matter how much you save (in the beginning).
The hardest part about saving money is simply getting started. How much should you save will depend greatly on your life goals, but also, on your current financial situation. If you are only working part time, or you are a one-income family, you may not have very much money to save each month. Don’t get discouraged and whatever you do, do NOT say you will “start saving when I make more money”. Save money right now, regardless of how much you make.
Even if you are only saving $5 each week, that’s still $240 a year that normally would have just slipped through your fingers. As you start to bring in more money, you can increase your savings amount, but in the beginning, start small if you have to. Don’t dismiss saving money just because you have a low income.
3. Eliminate all unnecessary expenses
There are many of us who complain about having no money to save, yet we go out to the movies every weekend, buy new clothes with each paycheque and have a $300 monthly cable bill when we rarely even watch television.
Stop paying for things that are not necessary and save that money instead. Don’t buy new clothes if you already have a closet that is bursting at the seams.
You don’t need to completely eliminate cable (unless you want to), but at least scale back on the cable package that you have – why pay for something you’re not using? As for entertainment, stop overspending. Simply commit to only going out once or twice per month.