The Magic Number

StopGuiltySaveMoney

Some people are born savers. It’s like a sense for them. They see saving, they smell saving and they taste saving. I do not. I am a horrible saver. I have always been the person who will make great purchases but will spend every last cent available.  I have tried every savings challenge out there. While these are great plans (Dave Ramsey’s do whatever it takes to save $1,000) or the 52 week challenge saving $1 the first week, $2 the second, $3 the third and so forth, and just the plain old plan of saving 10% of everything you make.

It’s frustrating because as much as I want to save, I just wasn’t catching on to it.

However, about a year ago, I read an article that indicated the typical family cannot live a stand lifestyle if they make under $45,000 (http://www.nccp.org/publications/pub_858.html). This means debt and zero savings. Well, our family of FIVE, was living off well under this amount. It made sense that were were going into debt and had zero savings. Every time I tried to save, something new came out of the woodwork to be paid for.

This realization changed my thinking. I stopped feeling guilty for not being able to save and started working towards making $45,000. IF this $45,000 was the magic number for being able to save then it was the final step that I had not taken.

$45,000 seems like nothing in today’s world, but it seemed like Mount Everest to us. It’s not easy to figure out a way to make $10,000-$20,000 more a year.  And it doesn’t happen all in the first year. It is a process of improvement upon improvement. It includes a lot of sacrifices of time and pride. It means taking chance and trying new things and also failing a few times.

To make money sometimes you have to put forth an effort and wait patiently for the money. In this regard, I have incorporated two new things into my life that don’t generate money but are building my human capital. One is finishing my education and by that, I mean continuing my education. I hope I never stop learning and challenging myself but for this purpose it is to graduate with a degree. I also have woven writing into my lifestyle. I actually got paid to write once last year ($160 for four articles), which boosted my self esteem and confidence one hundred percent! In regards to writing, I hope to maintain this blog and write a book, which would both produce a nice income.

Choosing to try to make more money also means saying no. By that, I mean no to extras, saying no to my children (a lot, I might add), and saying no to some of the many opportunities there are out there to make money. Just because an opportunity is working for someone else, doesn’t mean that we have to feel obligated to try it.

I also learned that in the time when you want results but haven’t seen any, you must remain diligent in your efforts. Simply, this means keep trying to save even when your savings account keeps getting tapped into or depleted.

At the beginning of 2016 I implemented my own savings plan. Let’s just call it the “1% Savings Challenge.” Basically you start savings 1% of all income you bring in and each month you add 1% to the base savings percentage. So, here we are in March and I am savings 3% of all income. My goal is to end somewhere between 60-75% of all income saved. I know, I know… it’s a lofty goal. It’s not going to happen tomorrow but I will be successful at it as long as I keep trying to reach it and don’t quit! Remember, it’s a rollover goal (https://settledvagabond.com/2016/01/24/rollover-goals/).

Where do my savings go? I use CapitalOne 360 and am currently getting an APY of 0.20%.  If you are interested in opening an account you can use my referral link – https://r.capitalone360.com/Dd2rH98FYv.

Here are a few other websites with saving tips:

I hope you enjoy saving and making “enough” money this year!!!

 

 

 

 

 

 

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