5 Saving Tips for 2021
I have been through a lot when it comes to getting my finances in order. I was the one who spend money when I did not have to. I always wanted to be in the spotlight like the “Jones”, buying things when I did not need them. I never took the time to think about my purchases. I just purchased because I wanted to. I never asked myself the questions; Did I really need it? Would it benefit me? Will I ever use it?
Because I failed to think and in a short period I had a lot of unnecessary debt.
I had so many credit cards till my extra funds was going toward them and the high interest rates that came with the cards. What really made me sit down and reevaluate myself and my finances was when my husband could not work for 6 months. He still had income coming in, but it was not the same when he was working. Short -term disability is not really a lot when you have a Mortgage, Utilities and Car notes .
I had to say; enough is enough ! I started in my closet; I realize I made purchases that never benefit me. I was just buying because it was on sale and I had to have what others had. Because of these bad choices I had to rethink the way I was making purchases and spending money. The tips I have has helped me to get my finances back on track and to get rid of unnecessary debt.
Create a spending plan
It is important to create a spending plan for you and your family. You must know what is coming out monthly and what is coming in. Make sure you create a zero base plan/budget; which means that all revenues must be added to an expense. If you find out that you have a credit balance at the end of the month; don’t leave it sitting there all alone; assign it . Add that extra funds to pay off a bill or better yet pamper yourself.
After you create your spending plan also schedule a day of the week to see where you are with your spending. What ever you decide you must make sure it is assigned to something. Never leave it unattended.
Square of Saving
I know that this sounds weird, but think about it. Just like a picture frame. You are in the center. The frame is on the outside; it is protecting the picture which is you. Think about what is keeping you going monthly. For me; the four corners of my square will be: Mortgage, Utilities, Transportation and Food. Lets talk about each and why I pick these four.
Mortgage: I need to have somewhere to laid my head; in other words; I need a roof over my head. So my mortgage is the most important part of me. If I don’t pay my mortgage I risk being out in the streets or moving from house to house living with family and friends and this is not what I want to happen.
Utilities: I will need lights to move around in my house. without this; living in my house would not benefit me at all. I won’t be able to function like Cooking, taking baths, etc.
Transportation: This is also an important part of me. I need this to get me back and forth to work. If I cant get to work I cant pay my mortgage or utilities. I can also risk losing my job due to attendance. Jobs don’t want to hear; I cant make it to work due to transportation.
Food: Your body needs food to survive. Everyone needs food to live. I don’t want to think about me not having food to eat.
What is my YOU may not be the same for you. Draw a square and in the middle write YOU; think about what you need to make it from day to day. Its not hard; you know what you need.
Inside the SQUARE is YOU
Outside the square is what is important to you.
Stick to a Budget
Creating a budget is easy, but the hard part is sticking to it and updating it weekly. There are things you cannot control and there are things you can control and what you can control is your budget. You know what you can spend and only you know your limits. If you know an expense is not in your budget; do not add it. For an example; Dining out; if your weekly budget is only 30 dollars ; stick to that budget. I promise you; sticking to it can lead to positive results.
Credit Cards
They are the DEVIL. They are not to help you, but to harm you. The interest on these bad boys can hurt you. I use to have 5 credit cards. The interest monthly on all of them was 100+. Paying them off can keep extra funds in your pocket. It is important to pay off this debt. Start off with the smallest amount; adding extra funds to the monthly amount. When you have paid off that credit card; move on to the next one until you have paid them all off.
Remember, its not going to happen over night. It will take time and dedication. When you paid them off; DO NOT RECHARGE. You don’t have to close them all out, but keep on handy for unnecessary purchases. It is good to have 1 or 2; but only use them if you are able to pay them off that month.
Emergency Fund
During the pandemic I realize that having an emergency fund is very important. We did not know that the world would change like this. Unexpected events will happen and they will happen when you least expect it. Having a secured fund will help you through these challenging times. I can hear you say, “ I cant do that, It’s not in my budget” ,but yes it is. You can start off slow and as time goes you can increase. Having an emergency fund can give you the peace of mind you need. Would you rather have money available for a rainy day or do you want to just cross your fingers wishing that rainy days will never happened. Lets be realistic; Challenges happen and that is the way of life. Its what you can do to prepare yourself. My father once told me to put 5.00 a pay period in your saving account and do not touch it. When you see that $5.00 is not hurting you add an additional $5.00; continue to add in increments of $5.00. I did that for 2 years without touching it or seeing what I had and my emergency fund grew.
You must have patience and discipline; Start small and you will always end up BIG. There is one thing you can control and that is your budget. Take control before it takes control of you. I did not want to be a slave to debt; so I decided that enough is enough and I took full control. Just like Janet Jackson said, “ I’m in Control”
I hope these tips will help you achieve your financial goals. Each tip has helped me and I am proud to say; I am almost Debt free. It’s not going to happen overnight. You must be patience and stick with it. Remember you are in control and you can make this happen.
If I can do it so can you……..