Ready For That Rainy Day
You probably already know you need to save for a rainy day. Problem is, there doesn’t seem to be enough money to put aside for that rainy day. All of your money seems to be going for today’s needs – and you’ll just have to worry about the future when you get there.
Unfortunately, that is the financial equivalent of sticking your fingers in your ears and shouting “I can’t hear you!” Just because you don’t want to acknowledge that a savings account could literally save you doesn’t make it untrue. Job loss, unplanned pregnancies, car accidents, medical emergencies, transmission blowouts – they happen to all of us. Say it with me, “Something WILL happen.”
Right now, you might feel like you are stretched so far that you’re ready to give up before you’ve started. You might be paying off debts from years past, or borrowing just to get to the next payday. That does not mean you shouldn’t start putting a little bit aside. Forget about saving for retirement or your next vacation. Let’s figure out how to save for your next emergency.
Financial experts recommend saving 10% of your income. But unless you are in excellent financial health (and let’s be honest…you would have stopped reading by now if you were), this might look unattainable. So let’s start small. We’re going to take a teeny baby step and start a habit of saving. Let’s shoot for 1%. That’s right. Just 1%. How much is 1%? Look at your paystub. Then move the decimal point to the left 2 spaces. Try to put that much money aside every paycheck. Here’s an example:
Tina makes $800.00 every paycheck. Now, Tina going to shift that decimal point over to the left by 2 spaces. How much is that? $8.00 every paycheck. If she gets paid every two weeks, that would be over $200.00 saved in one year! It is not a lot of money and will not shield her from life’s emergencies for very long, but it will help her get into the habit of setting a little bit aside every paycheck.
I challenge you to find that little bit of money every time you get paid or get a windfall (like a tax return). As you get into the habit of saving, up the percentage even more. Challenge yourself to find ways to save 2%, 5%, or 8% of your paycheck. You will start to feel a sense of control over your finances. And you’ll be a little more prepared the next time your car doesn’t start.
Joanna B. Says:
The New Frugality by Chris Farrell
Joanna B. Says:
Securing Your Future by Chris Smith
Offers a lively, detailed, and insightful guide to personal finance fundamentals for those just starting out on their paths to long-term financial security. Chris Smith provid more...
Amazon Says: Amazon
Offers a lively, detailed, and insightful guide to personal finance fundamentals for those just starting out on their paths to long-term financial security. Chris Smith provides the tools and guidance readers need to get on the right track with their savings, investing, buying a house, and financial planning for the future. less...
Joanna B. Says:
How To Speak Money by Ali Velshi and Christine Romans
Do you speak money? You should. It is the world’s most important language. It’s spoken everywhere. Speaking—or at least understanding—this language allows you to follo more...
Amazon Says: Amazon
Do you speak money? You should. It is the world’s most important language. It’s spoken everywhere. Speaking—or at least understanding—this language allows you to follow the real conversations in politics, business, and at work. Understanding money and speaking the language fluently is critical to preparing for a comfortable retirement, building a small business, planning for college and a career for your children. Everyone speaks it differently, with different dialects. Some are riskier than others. Some want to save their money; others want to see it grow. There is no one accent, but understanding the differences will make couples, business partners, and coworkers happier—and wealthier. Authors and CNN financial experts Ali Velshi and Christine Romans speak the global language of money and translate it every day for hundreds of thousands of viewers. And they are here to teach you, too. It’s easier to learn than you might think.Speaking money affects every area of your life. It’s more than simply your savings or the investments you may have. It involves the way you think about money, the way you teach your children about it, and the way you were taught about it yourself. It’s about the way you spend it, save it, invest it, use it, need it and want it. The book will:Shed light on the male and female spending and investing disparityDiscuss emerging international economiesWeigh the financial hurdle of student debt culminating in a successful jobExplain how to budget wisely and build wealthShow how to plan appropriately for retirementHow to Speak Money is an easy-to-read, practical book that helps readers become fluent in the world’s most universal language. less...