Did Anyone purposely sign up to work, pay bills, and barely make ends meet until we die? Did you intentionally go to school, rather it be grade school or college, to come out and work 40 hrs a week ( rain, sleet ,or snow) for 52 straight weeks? All of that to “maybe” retire at 65. Did you happily commit yourself to being told when or when not you can take your vacation or use personal time? Even worse… did you willingly surrender your freedom because your well being depends on the fact that you can’t miss a day for fear that your check won’t “add up”? Of course, none of us did this knowingly.
Living Paycheck to Paycheck is a cancerous financial condition that grows into other prohibiting conditions later on down the line. When you subject yourself to living for your next paycheck, you put your life in the hands of your employer. If the next paycheck never comes, how will bills, mortgage, or rent be paid? How will you travel? How will you provide for your child ? Will there be presents under the Christmas tree?
Saving Money!
On the road to building financial stability, a solid SAVINGS ethic cannot be emphasized enough. In fact, forget everything you know about anything pertaining to earning money. The old quote “A penny earned is a penny saved” does not paint the full picture of the advantages saving has. Actually a penny saved is totally BETTER than a penny earned. This is because any penny earned in the United States is taxable by uncle Sam. Your Savings account is not taxed. $100 now will be $100 next year (face value not accounting for factors like inflation). More than likely your savings derived from an income source which was already taxed or a gift.
Too much emphasis has been placed on building wealth with credit or using OPM (Other People’s Money). However, you cannot START any investment endeavor without having a little of your own money. No one will be interested in you managing their money if you can’t even manage your own. You cannot begin to think about any financial avenue such as investing/trading, savings bonds, buying a home, lines of credit ,or business ventures until you build a strong savings account.
A healthy savings account can guard you against a lot of financial hardships lingering. You just have to find the appropriate rate of savings that accommodates your lifestyle. But the key to savings is making SACRIFICE. This means things like monitoring the number of times you eat out (the silent killer of funds), taking one less trip a year for travelers (Millennials) , one less drink, one less pair of shoes (sorry ladies). Somewhere along the lines, excessive things must be identified, reduced, or eliminated.
Where do I start?
First and foremost with your next paycheck, PAY YOURSELF. This means set aside a predetermined amount to SAVE. It doesn’t have to be large or significant. This is the starting point of financial discipline. You’re committing to YOU. It could be just $25 but vow never to touch that $25 for at least two pay periods. Watch how insignificant that money becomes once it’s out of sight. Human beings are survivors 1st, we find ways to make due.
Saving money will never hurt you. Just think about the times when you had an unexpected expense that was about $500 or more, it was tight but I’d bet you found a way to pay it. We must find ourselves to be more important than the things we make sacrifices for that ultimately disrupt our lives. When maintaining your savings, realize it is for the better of your future. This is just as important as looking good, traveling, eating well etc. It is also just as important as paying the light bill.
Paying yourself gives you some “bounce back”(room for error) in life for the mannny things life throws your way . Things like layoffs, car problems, hardships, home repairs, school expenses, gas bills, electric bills, etc! Fend off paycheck to paycheck by providing yourself a reliable cushion. Save money to assist yourself when the time comes. You’re gonna need it… so don’t let your own self down. Don’t let your child down. Don’t let a paycheck determine your next move. You are in control of your money. Once you establish a solid savings, then you can begin to explore the ways your money could make you more money and break barriers! Subscribe!