This post is part of a series which looks at steps to help you have a better financial situation over the next 30 days. There are resources to helpful links contained inside of each post.
Day 1 Changing Your Financial World In 30 Days
Regardless of who you speak to or look to as a role model, we all would love to improve our financial position. If you poll 100 people, 95 of them would like to improve their financial situation. For most people the thought of making changes to their finances is overwhelming simply because there is so much to think about. This leads to most people doing nothing at all or attempting large drastic changes. Taking large steps creates a situation where you fail and them become discouraged. It is better to make small incremental steps which are easy and allow you to have some success. We will give you a step per day over the next 30 days to change your financial world.
Day Number One: Start the path to saving $1,000 today.
While having $1,000 in savings isn’t the end goal, it will be a great start. This will help you get in the habit of saving. Today, go open a separate savings account that will allow you to automatically deposit $100 weekly into the account. This will grow to $1,000 in ten weeks! If $100 weekly is too much start with $50 per week for 20 weeks. The important thing is to get started!
This will help you get into the habit of saving on a regular and consistent basis. Increasing your savings rate would be the goal. People who are able to save 15% to 20% of their income become successful financially. This allows them to learn to live within their means as well as prepare for ways to be more efficient with their money.
Most people ask the question, what about getting a rate of return on this money. While rate of return is important, it isn’t as important as savings rate. You can’t control the rate of return on your money but you can control the rate at which you save your money. It is important to learn what you can control and what you can’t control.
Once you become a great saver, than you can start deciding where to put your money. Good savers have at least 6 months of their bills in a savings account. Great savers have 1 to 2 years worth of bills put away in a safe place. This allows them the freedom to deal with the things that live throws at them. How nice would it be to know that even if you lost your job or couldn’t work for 2 years you would be in good shape financially?
So take the time to open that savings account today and get started. This will be your first step on your financial journey. The best way to start is to actually get started.
Tomorrow, we will take a look at selling the things that you no longer need or use. The money that you earn could help jump start your savings account.
Resources To Help You Save $1,000: