May 19 5 Digits Saved in 6 Months
When it comes to me and my money, I haven’t always been so kind to myself. I was notorious for spending money as soon as I had on instant gratifications like food or clothes or taking a girl I really really liked out on some expensive date just to impress her. And do you know what all of these things had in common? They took more than what I gave and left me empty after a while – in both my heart and my bank account.
I would repeat this abuse paycheck after paycheck, bonus after bonus, tax return after tax return. Don’t even get me started on those financial aid reimbursements in college. I’m still living with the shame of my spending habits *facepalm*. But recently I discovered something about myself and money that I’m going to share with you. What do I get out this? Well, the visit count which help me with my Google AdSense and website traffic of course. But I also get the sweet satisfaction that I get to help somebody do so much better with their money to. I get to help somebody avoid the mistakes that I made. Read on for more.
These are the steps that I took to get five figures in the bank in six months:
Change of MindsetBefore anything I had to change my mindset and feelings toward money. I had to go from treating money as a tool at my disposal to an asset that I respect it. Making money and saving money takes time so I shouldn’t be wasting it or spending it on people who at the end of the day don’t care about me as much as I care about them. I also have to treat money with a human sort of affection. What does that mean? Well, simply put, Much like with a pet or child, I had to train my money, cultivate my money and grow my money. More on that later.
More in Than OutI had to generate more revenue than my expenses total. Because I’m not a business, I’m going to talk about this as an individual. They say the way to millionaire status is to have six streams of revenue or income. I’ve only ever been able to do as much as four. But that’s a start. Recently I had up to three jobs all bringing in significant amount of money. At the end of the day, I was making more than I needed to spend.
The Right Financial ToolsI had to use accounts and financial tools that would help my money grow. I decided to put my savings into an account that took 3 to 7 days to get the money out and put the money end so that I was outsmarting my spending habits. I did this with a personal savings account from American Express which has one of the highest interest rates of all banks. I also utilized money management tools like mint.com and one of my favorites, MoneyLion. With both tools I was able to track and gauge my spending habits and to see where money was leaking out.
Follow The RulesWhen setting up a budget some people follow the 50-20-30 rule. I like the 60-20-20 rule which works like this: 60% of what I make goes into savings, 20% of what I make goes towards bills, and the other 20% is spent on things that I want like eating out or buying a new T-shirt from Old Navy. At times I would even do a 60-40-whatever-is-left over rule so that 60% was going into savings and 20% was going to add bills. If anything was left over then I would treat myself or splurge.
The Whole Point:
Following these four steps and committing myself to a discipline of saving most of my money and spending the rest wisely, I was able to get the five figures saved in my bank account and take care of important things like fixing my vehicle or buy new tools.
The idea is it that you don’t have to be married to money but your money should always be doing something. You won’t get more with a clenched fist, so being able to give and spend the right way is important. But you don’t want to waste money either. So, if you’re not spending it, it should be in an account that’s collecting interest and growing.
There’s so many neat tricks and tips that went into getting to this point in such a short amount of time. If you’re interested in learning more, feel free to drop me either a comment or a message and let’s get you enrolled in my financial workshop.