Good morning Beautiful Women Supporting Women,
Happy Monday to you! I hope you had a fantastic weekend! I spent yet, another weekend with my Foxes in Crime, doing a workshop on one of my favorite topics: Life Insurance. It was great to have a captive audience, who asked great questions about their own policy and coverage in general! Education is key. I’m also glad the election is over. I turned off my TV for 3 days because it started to become toxicity overload! May we be a nation that spreads love and not hate.
How did everyone do on their new Budget? Last week, you were to begin creating a list from the tips I shared in the blog. Hopefully you had a chance to do so.
This week, we will talk about frivolous spending aka, spending on items we want as opposed to need OR simply, cutting back.
According to studies, a person needs to have at least 6 to 12 months worth of savings put aside for the unexpected (e.g. loss of job, etc..). Fellow Financial Advisors state a minimum of 6 months because this is how long it could take someone to find a job, in case they are laid off.
Statistics show :
- 58% of people have less than $1000 saved
- 40% pay for an unexpected event with cash
- 30% had an unexpected emergency just within the past year
This is why it becomes so important to start saving and watching your budget. Sharon Epperson, Senior Personal Finance Correspondence from CNBC says to start off small with your savings. In today’s environment, saving for 6 months can seem unfathomable, but 1 month may seem more doable.
You can start by doing the following:
- Once you have created your budget (income – debts), see what you have as a surplus (start taking 20% and putting it in a high yielding savings account, if you can find one – online banks have better interest rates than store front branches – Ally and Chime Bank are just a few)
- If you don’t have any additional savings left over from your paycheck then let’s look at ways we can cut back. If you buy a cup of coffee every day, that could cost about $5.00 or more. Let’s calculate the savings:
- $5.00 X 5 days a week = $25.00 a week
- $25.00 X 4 weeks in a month =$100 a month
- 100 X 12 months in a year =$1200 a year!
You could save $1200 a year if you make your own coffee or scale back from buying everyday! The goal is to get ready for the unexpected and create a cushion.
Revisit your Budget and see what is not giving you a return on your money. Outside of mere emotional satisfaction, spending frivolously is doing nothing for your pockets.
Leakage is a term that is being used in corporate. What it basically means is that people are dipping into their Retirement Plans to survive! Prudential and some other companies are setting up after tax savings accounts for their employees. This will allow the employees to start saving right from their paycheck. Automated deductions into a savings account can help. Look at Digit. Set goals for yourself and they will draft a safe amount from your account when they can, to help you achieve it. It’s great! I actually use it myself and you’ll be amazed at how fast your money accumulates.
If you have any additional questions, please feel free to post here OR email me at: firstname.lastname@example.org
Next Week: How To Survive on A Barely There Budget
As always, thank you for reading and sharing.
Have a beautiful and blessed week!
Changing the lives in our community….one family at a time