America Saves Week 2020 is still a month away, but we don’t want you to have to wait that long to get savings tips that will change your finances.
Many of you don’t save money because you think you can’t or that you don’t have the money. The truth is you do have the money – you’ve just promised it to other people or have things that you believe are more important that you need to use it for. But there is nothing more important than making sure you have an umbrella when the storms of life come through.
I don’t want you to have any excuses for not saving so here’s a tip that you can use today to get started. Take $10 – from your account, your couch, your car, anywhere – and put it in a savings account. (You have $10 and you know it!) If you don’t have a savings account already, you can open an online savings account in 2 minutes . It’s okay to start small – you just need to start.
And if you really want to build wealth, set up an automatic transfer for another $10 every paycheck. Doing this forms the habit of savings and when you develop this positive habit, you will want to do more and more, building wealth along the way.
So no more excuses! $10 is all it takes to change your finances forever in a positive way! You’ve got this!!
There is one thing I can guarantee you – no matter where you live, it is going to rain. Maybe just one day a year, but it will rain. When it rains on you, are you prepared with an umbrella or are you going to get soaked?
The same way it will rain on you literally at some point this year, it will also rain on you figuratively. Something unexpected is going to happen. An emergency is going to happen. Life is going to happen. Do you have an umbrella or are you going to get soaked?
Right now, many people in this country are wishing they had an umbrella – even a small one. It is raining on them right now. They are not getting paid because of a situation that they couldn’t control. Some were prepared, but many were not. Some will be able to continue to pay their bills and put food on the table, but many will not. This is just an example of what happens everyday in this country and in our lives. Life happens – some things we know might happen and some things we have no clue are going to happen. This is why an emergency fund (umbrella) is so important. If really should be the number one priority in your finances.
So how big should your umbrella be in order to not get soaked the next time it rains. Ideally, you want to have one year of expenses set aside. But start somewhere, even $50. And just keep building it. You want to get $1000 to $1500 as soon as you can. This way you can handle a sprinkle if it comes through. Next, set aside 3-6 months of expenses. This will cover a regular rainstorm. And then save up to one year of expenses. This size umbrella will cover any storm that comes your way – sprinkle to hurricane.
It is going to rain this year. Are you ready? Today is the day to start. Whether you are starting at the bottom, or building what you have into a bigger umbrella, today is the day. As people find out each and every day, you never know when a storm is coming. The best thing you can do is be prepared. Having an umbrella can be the difference in the rain being just a little nuisance and it being a drowning storm.
Listen to Debbi’s podcast on this subject and so much more.
In my last blog post, I spoke about planning to get out of debt and how to move forward toward the goal instead of just saying you are going to get out of debt. Part of moving forward and part of the planning stage is deciding which way of getting out of debt is best for you. It is important to note that either way works and whichever one you choose, if you keep going, will get you out of debt. But it is vital to your success that you pick the one that will work for you. And if you pick wrong, you can always switch later on. The most important thing is that you are getting rid of your debt and setting yourself up for building wealth and reaching financial freedom.
So let’s explore the two most popular methods:
Debt Snowball – This is by far the most popular way because you can see immediate progress and quicker progress in order to keep you motivated in the beginning. The snowball method has you listing all of your debts in order – the smallest one to the largest one – and paying them off in that order. This method doesn’t take any math into consideration – it’s all about emotion. You may pay a little more interest depending on your situation, but it won’t be enough to quibble over. And in most cases it will be less simply because you will stay motivated, finds ways to save and earn more and pay your debt off faster than you originally planned.
Debt Avalanche – This method helps all the math nerds out there. The avalanche method has you listing your debts in order by the interest percentage that you pay. The pro of this method is that you can save some money using this method. However, the con of this method is that many times your lowest interest debt can be a large one. Therefore, it may take months or even years to pay off just one debt. It can be a challenge to stay motivated in this scenario.
Let me repeat – the most important thing is that you pay off the debt. Getting rid of the debt is vital to your wealth building journey. It doesn’t matter which method you use – they both work. You want to pick the one that will work for you. I used the snowball method because it was extremely motivating to me when I paid off 4 debts in one month. This helped me to begin to feel freedom and kept me going when the debts got higher and higher and took longer to pay off.
So as you being to develop your plan to get out of debt, take the time to be honest about which plan will work for you. And if neither one suits you, make your own. You need a plan and you need to start taking steps immediately toward getting rid of your debt. Doing so begins your awesome journey to wealth and financial freedom.
Get all of Debbi’s award winning books right here and begin your wealth journey today!