Feeling financially overwhelmed? You’re not alone. Financial stress may be unavoidable, but there are steps that you can take to help you prosper financially.
Do I have to mention that 50% of American households cannot afford an unexpected bill of $500 or more, or only 35% of credit cardholders pay off their balance each month?
Or do I need to let you know that by missing a credit card payment, or maxing out your card, can lead to a reduction in your credit score, which means a more expensive lease agreement or personal loan agreement when going to borrow money?
Or do I mention that when most people earn more money, they simply upgrade what they have or attain another bill through another subscription etc., meaning that the extra money that they have earned is negated?
So, regardless of earnings, the same result will always occur at the end of the month.
So given all these statistics how can you fair in the looming prospect of being financially successful?
Save First, and Then Spend
Pay yourself first. When I first heard this phrase, I actually thought, how do I pay myself? What with?
Then I realized that it does not really mean to pay yourself first, but save first and then spend.
At some point in time in our lives, odds are is that we have been short of money. Whether it be at the grocery store, traveling, or being on vacation.
In that case, what did we do? We simply made smarter choices. You made do with some things and not others. Think about how your decisions changed when you were short of money.
When you know you have less money to spend, you make smarter choices, because you have to think about the best way to spend that money.
Each dollar has a value and you can only spend it once. I would recommend using that same mentality even when you aren’t short on cash.
Savings is Key
When you get paid, I suggest putting 10% away immediately. You will soon get used to having less disposable income each month, but guess what, you will be making smarter decisions, which is a win-win.
(If for example you get paid $1,000 per month)
By the end of the year, you have a month’s salary in the bank, you no longer are one of the 50% “have not” statistics and you are making smarter choices each month. As you get paid more, you are able to save more and keep grinding and stay at it.
How to Save Your First $1,000
It’s possible to save $1,000 this month — if you’re having trouble saving, don’t worry because I can show you how to save your first $1,000. If I can do it, you can too. Don’t let anyone tell you differently.
I’m a 28-year-old father of two. If you know anything about raising a family you know it can fiscally taxing.
It was so easy to live paycheck to paycheck when it was just my girlfriend and me.
I soon learned after our first child that I was going to have to get serious about being fiscally responsible if I wanted my children to have a better childhood than I had.
Here’s what I did to save my first $1,000 in 2 months.
The first thing I learned when it came to saving $1,000 was that I had zero discipline. I would put money to the side and a day later find an excuse to spend it. It was like an addiction.
I had to spend something and did a ton of impulse buys. After some reflection, I realized that my issue with saving stemmed from not wanting to be without money (Ironic; considering I always spent it).
I looked myself in the mirror and asked myself “how much can you live without?”
I decided I would dedicate 10% of my weekly paycheck to my savings and keep the rest.
2. Get Motivated
The first paycheck came and I saved $80. I was proud of myself.
I occupied my mind with other ways to make money to keep from going into my savings.
I read books that motivated me to reach my goal of saving $1,000 fast such as:
These books helped get me excited about saving money helped me stay on track with my savings plan.
Needless to say, I was excited about the pay week to come.
The second pay week came and I saved another $100. I now had $200 sitting in my savings account and my desire to spend it was getting less and less.
I started to save like it was a game!
3. Live Within Your Means
A few more weeks passed and I now was realizing I didn’t need much to get by. The kids had a strict budget. My girlfriend cut our date nights to once a month.
Once you stop spending money, you realize how much you have!
I was now looking at $700 in my Aspiration bank account.
The next pay week came and I decided to go for the gusto.
I had an extra $300 and I put into my savings and just like that, I had $1,000.
I had reached my goal of saving $1,000 fast!
4. You Can Do it
I learned in that short 2-month span, I was capable of more than I give myself credit for.
I had developed discipline financially, increased my knowledge by reading personal financial books, and became a better provider because of it.
Being Financially Screwed is Not an Option
If you’re having trouble saving, read this story and know I was just like you once, and if I can do it you can too. Don’t let anyone tell you differently.
Start today with these financial tips, what do you have to lose?
Once you learn how to save money, your savings are now there for a deposit on a house, a car, an unexpected vacation, further tuition, preparing for retirement or whatever priority comes your way.
Like any habit, the good habits are always the hardest to start – no sugar in your coffee etc., but with a little perseverance, you will reap the rewards.
Once you get your savings in order, you can learn easy ways to make some extra cash online.