You may or may not have ever considered the various reasons why saving money is important. Not only can it be character building, but it can also be very satisfying to watch yourself boss up and meet your goals. Maybe a goal like saving your first $100k. Or maybe saving to have money left over after saving for the down payment of your first home or car purchase.
There’s something awesome about delayed gratification that outweighs any fly by night splurge. Here are the 3 savings tips that you can start today to level up on your saving goals
In All Thy Getting…
The best way to start saving is to start understanding why you’re spending. Especially if you’re spending frivolously. The honest truth is that you’re not spending money simply because you have it in the bank, or worse, on a credit card. There are feelings involved. Yes. Feelings that can be categorized by either pain or pleasure.
Feelings of exhilaration when you splurge or the freedom you feel when you go out with your friends are feelings of pleasure. However, the feelings that we like to avoid are siblings of pain. Such as how you feel when you can’t go out or can’t afford to buy that new iPhone XS Max.
Now, you might expect me to say “get out of your feelings”, but no, I want you to do the exact opposite of that. Not only do I want you to be still in that “feeling” you feel when you’re getting ready to fail…I mean, spend, but I want you to also redirect. I want you to begin redirecting your thoughts on spending which will help get your feelings in check. “How so?”, you might ask. Easy – ask yourself these three poignant questions based on my “WNR System”(Wants, Needs and Rewards):
- Is it trending? Anything trending represents your impulse for immediate gratification of all of your wants. Do you remember when hoverboards first came out? Before the hilariously painful videos of people busting their asses or nearly experiencing death by hoverboard fire? Because they were trending they were more expensive. However, weeks later you could buy a quality hoverboard for half the original price on amazon.com. Basic supply and demand. Therefore, if what you want is trending, more than likely if you wait it out for a few weeks you will likely find a deal worth the wait and save a ton of coins.
- Are my bills paid? Your bills are a representation of the needs in your life. Fiscal responsibility not only reflects in your spending habits, but it also flows into other areas of your life. I’m pretty sure irresponsibility has peeped it’s little, ugly head in other areas of your life as well. So if your bills aren’t paid, then it goes without saying that you shouldn’t spend a dime on anything extra. Not for you and not for your kids and not for your friends. As the saying somewhat goes, the way you do one thing is how you do most things.
- Is it deserved? If your bills are paid and you haven’t been on a spending spree, the next thing to consider is if you have put enough skin in the game to reward yourself for good behavior. If you have, go for it! Sometimes you just simply deserve to eat the cookie and buy the shoes as noted by one of my fav speakers, Joyce Meyers. However, if you feel as if you haven’t really saved as much as you could have for that week or month, go ahead and enjoy a slice of delayed gratification and set a later date to make the purchase.
Productivity Hacks Infographic: Top 20 Apps That Can Maximize Your Time
In today’s competitive and demand-driven world, there’s a constant need to stay on top of things. Between incessant emails and back-to-back meetings, phone calls and dozens of things to cross off your checklist, it’s no surprise we’re struggling to reach our productivity’s peak.
Here are 20 apps that helps you do just that.
DIY: Your 5-Step Financial Planning Guide
If you’re starting out to plan your financial future, it can get overwhelming. While many opt for a financial advisor to take care of the entire process, you can always handle your financial planning all by yourself (it’s simple, really) if you’ve got the right tools.
For starters, here’s what you need:
1. Set Goals!
Chalk out your goals—it can be short term, like paying off your card payment bills or long term, to meet expenses like retirement and your kids’ education.
Take a step back and do a reality check. Where do you stand now? How are your cash flows? How soon can you meet your expenses? Create a timeline to achieve these targets (and ensure you meet them!)
2. Do The Math
Calculate your total assets, after deducting the debts—and budget smart. Ditch your debt to stay away from piling on more to your list of financial risks. If you’ve got way too many debts to clear and it’s becoming increasingly difficult to keep track of them, here’s a great tool that comes in handy.
3. Build An Emergency Fund
Uncertainties can be hard, more so if they have a significant financial impact—be it an illness, job loss, or even global downturns.
To evade being stranded, ensure that you’ve built an emergency fund (a good start would be to keep aside six months’ worth of expenses), along with solid insurance coverage to back you up.
4. Hire The Right Agents
Apart from the general power of attorney, also ensure you lay out a directive in case a medical emergency comes up (if you’re incapacitated—we know, it’s not the best of thoughts to ponder over). To ensure you plan right, avail the services of an accountant, a real estate planning authority, and a medical power of attorney.
5. Earn Money On Your Money
The final step is to make sure you earn returns off your money. How’d you go about this? To start with, educate yourself. Read, read and read some more—research about what stocks, bonds, mutual funds, ETFs and other financial instruments do. Understand their risks, costs and how you can work on diversifying your investment.
It’s important to invest in something you understand.
Post this, set up your accounts to meet each of your goals—through monthly contribution plans, 401(k)s, low-cost index funds, IRAs or other savings plans. If all these details get you dizzy (or overwhelmingly hard), you’re better off with a financial planner who can do the research and investment planning for you.
VIDEO: How Shaq O’Neal Blew His Very First $1M Check In One Day
Shaquille O’Neal recounts spending $1M in under an hour, after locking in an endorsement deal just prior to being drafted by the Orlando Magic. The basketball star’s shopping spree gave way to a $150,000 Mercedez-Benz for himself, coupled with two others for his family.
What’s more, he successfully paid down all that his family owed and wanted to do “what all the homeboys do — gotta buy rings and diamonds and earrings and this and that,” he told Business Insider.