Nelson Mandela said, " It always seems impossible until it's done." Many of the people I work with think they can't afford to save until they create a "values based" spending plan. By shifting perspective and re-allocating funds, they begin to see that it really is possible to save something.
I shared a statistic in Money Mindset Challenge Day 6, that 38% of adults with incomes below $75,000.00 have no money saved for emergencies. This means when an unexpected event like; a job loss, illness or injury occurs, they have no assets or cushion to support them when they need it. As you create your savings plan, consider these tips:
1. Consider saving at least 10% of your take home pay. If that is not affordable start with any amount you can realistically live without. The point is to get into the habit of saving something each month.
2. Open a Short-Term account that would cover 3-6 months worth of living expenses and a Long-Term account that would cover expenses for 6 months or more. We will talk about other savings options in a future post.
3. Automate your savings. Set yourself up for success by having your savings automatically deposited into an account. Consider opening an account at your local financial institution and to curb impulsive decisions, open an online account.