Capital is FREEDOM
What kind of freedom would you experience if you had $100,000? How about $1 million? In contrast, even if you are employed, you are trapped if you have no money in the bank.
A couple with a mortgage, two automobiles, and two small children was once in need of my advice. They submitted a consumer proposition for a debt of roughly $50,000. I questioned them about their situation four years later. The savings account is always the benchmark. Their savings account had $48,000. On their proposal, a modest balance was still due. Why don’t they just pay out their proposal, I questioned them.
“No! Having money in the bank is wonderful. Very soon, we’ll have almost $50,000 in savings! ”. In four years, there represents a turnaround of almost $100,000. It was discovered by them. Another man I know has too much debt to be able to retire. His consumer proposal was submitted. We taught him to be more frugal. After three years, he had $27,000 saved up and was getting ready to fly to California to see his kid. First time in a long time. Before now, he had never been financially FREE to do it.
You too can succeed!
I previously wrote about the risk of “treading water.” Even if you are surviving, nothing is changing for you. Additionally, if you are deeply in debt, unforeseen expenses will put you in danger and over your head.
People make goals to get in shape and lose weight. Here, financial security is the ultimate goal, but let’s start by setting aside $2,000 over the following 12 months.
Most of us are aware of the concept of SMART goals. It represents
S – Specific means that the desired outcome is known in advance. Savings of $2000 over a year.
M – Progress must be quantifiable (Measurable). Savings of $167 every month.
A – Achievable means difficult but doable. A shift in priorities might lead to monthly savings of $167.
R – Relevant – Your financial situation will be greatly improved with $2000 saved.
T – Establish a deadline. You will need to spend about $5.50 each day, $38.50 per week, and $167 per month to reach your target in a year.
How to budget at least $167 each month:
• Bring food to work.
• Stop or reduce your use of takeout coffee. Make it at home and bring a good thermos with you. A coffee maker switch-flip takes 5 seconds and costs 5 cents. Coffee delivery takes ten minutes and costs at least $2.
• Review your phone and cable plans and make any necessary cuts.
A treat is dining out. Not your typical routine. Go all out at the grocery store. That will be far superior and less expensive.
• Instead of going to a pub, have a drink with pals at home.
Plan each meal. Avoid being discovered in the mall during lunch.
• Avoid going shopping if you’re bored. Find a more fulfilling activity to engage in.
• Look for free activities you can do with your kids. Spend time with them rather than cash.
• Being kind and generous is admirable, but avoid being used. Don’t act as the ATM for your large family.
• Base your purchases on needs rather than wants.
• Make kid-friendly snacks at home rather than purchasing them from a store. Discover how to bake nutritious cookies.
• Avoid contrasting yourself. The visual world can be highly deceptive. Only think about your fortune.
• I’m confident you can examine your spending and identify further areas where you may reduce unnecessary spending.
You must teach your mind to like saving money if you want to succeed. Feel wonderful when you accomplish your daily, weekly, and monthly goals. There won’t be a straight line in it. Unexpected costs will arise and have an impact on a weekly objective, but they will be made up. Your pride and self-esteem will increase as your bank account does. Once you get started, the majority of you will save more than $2,000 annually.
Time to choose your next objective!
