Saving – A 4 Step Process

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Time is flying and we are already at the end of the first month of 2019. Unbelievable.

Quick check in… how are those New Year resolutions looking? Are you still committed to them or have you already fallen off the wagon? Trust me this is a judgement free zone.

If one of your financial resolutions is to increase your savings then this week’s Money Issues guidance should be right up your ally or maybe that rope you needed to save you from you.

Speaking from personal experience I have come to realize that the discipline of saving can be very difficult for a lot of us. The main reason is that the practice of saving is a learned behavior. So, unless someone actually went through the motions of teaching you how and why to save – demonstrating by action and in language – then the foundation of seeing the value in it can tend to be skewed. Before you interject with the “But if’s”… we have to come to come a point where we take ownership of our current situation and begin to move past the obstacles we believe are preventing us from living our best lives. 

Keepers you gon’ learn today.

I get it, you want to save for your wedding, that summer vacation, your kid’s college education, a new home, your retirement and for whatever else has made its way onto the never ending list.

How do you prioritize when everything seems to be equally important?

1.Make a list

The first step is to write down anything and everything that you want to save for. Or type it – if you are one of those people that no longer carry a pen and paper around. The point is to translate your thoughts into a format where you begin to take action. Seeing something on paper can be totally different than what we tend to envision in our minds. Trust me, it’s just like that Tesla I envision myself driving –the reality of that on paper looks totally different right about now. IJS

2. Give it time

After you’ve made your list, assign each goal a deadline. The most important part about creating deadlines are to be realistic. Our goal is to actually accomplish saving for the things on our list, so if you are trying to save for something that you know will take you at least a year, this is not the time to go bad on ‘em anyway and write down six months. Simply because it’s self -defeating. (I do like that Drake and Meek song though).

3. Needs vs Wants

Believe it or not, these are not the same thing. Yet sometimes the lines get a little blurred when you are categorizing things such as an African Safari as a need –it’s all about self-care in 2019, right? Determining whether a goal you have listed is a need or a want is completely subjective and personal. While saving for your child’s college education may be a need to someone, for others it could completely be perceived as a want if they are satisfied with their child taking out student loans.

4. How much will it cost?

The final step is to determine how much you will need to save to reach all of your goals. This is when it all gets real. Start with the final dollar amount and back into the monthly savings using your desired timeframe. Planning is the key to prosperity. If you find that your current situation does not afford you with the opportunity to save for all that is on your list, then you are now able to use this as a guidepost for seeking additional opportunities: new job, new side hustle, advanced education, etc.

Remember, “wealth isn’t’ about money. It’s about options…and you always have options. Choose wisely.” – Richie Norton

Let’s keep doing the work.

-Drea

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