Are you struggling to save money?
Well, today’s article will be the key for you to creating financial stability in your life. It’s shared from our in-house financial expert, Yolonda B. Beverly.
She is a Tax & Financial Specialist whose passion is to see others particularly women live financially free without stress & worry. Get your pen & pads out because she’s sharing a lot of content here.
Are You Paying Yourself First?
By Yolonda B. Beverly
“WISDOM is the power that enables us to use knowledge for the benefit of ourselves and others.”
Are you paying yourself first?
Elaborate homes and fancy cars are two of the most sought out desires that Americans dream of having. Becoming owners of such material things gives us a sense of achievement, as well as, the notion that we have finally made it to the big leagues. Shelter and transportation are not merely the expenses that can keep us working until we are well over retirement age. It’s those small purchases on our credit cards that easily influence us to tap into the world of debt.
Debt exists in our lives because we find struggle with living within our means.
Our heart’s desires are greater than what our money allow us to acquire. In other words, we make purchases we really cannot afford. As a woman, I enjoy buying shoes. I get so excited as if I were a kid in a candy store. It is an emotional attachment that keeps me going back for more. It is evident, those shoes will depreciate in value, go out of style, and or eventually I will end up giving them away only to purchase more. I often ask myself, “Did I really need that extra pair of shoes,” when my tiny closet is running over.
It is a blessing to be financially stable and buy the things that give you great pleasure. Enjoying material things are not bad; in fact, the Creator of all things gives us the means and ability to do so but let’s not forget that you owe yourself too.
It takes a great amount of effort to just start your day. Fathers give up time to provide for their families and mothers give up being the primary caretaker of her little ones when her income is need to take care of home. There is an opportunity cost in everything you do to take on one thing means you are forfeiting another. So why not pay yourself first.
Getting in the habit of saving may be painful at first but it doesn’t take long to establish a consistent routine especially if it is invisible.
“What is meant by invisible?” Having the money deducted before you even see it. You will never know it is missing. Part of a savings plan will most likely include long term goals such as retirement, but there should always be room for short term goals allowing you to make big purchases such as a car or home. Here are three easy ways to start saving.
- 401K – If the company that you work for offers a retirement plan such as a 401K, enroll as soon as possible especially if they match it, this is essentially free money
- Roth IRA (Individual Retirement Account) – is a great vehicle for young adults and for those who are working for employers that don’t offer a 401K. The investment can grow tax free and can create great wealth if it is started early on.
- High Interest Savings– with this vehicle you can have funds direct deposited to the account from your paycheck or you can have it transferred from your checking account to your savings.
Paying yourself doesn’t mean to go and buy something you have always wanted it is simply saving a portion of what you have earned preferably ten percent. It doesn’t matter where you are in life you should be investing in your future. As you grow older, shoes, elaborate cars and dream homes are not going to mean as much anymore. Life will take you on a whole new ride on that could possibly include traveling the world or enjoying family without the stress of trying making ends meet.
The next time you are looking at a hot new ride or those fancy shoes think about what it would mean for you if you decided to spend everything you earned when it is not a necessity…..a life time of work. Don’t get caught up in a materialistic world, love yourself enough to pay yourself first….Now Get To Saving!
Do you have a savings plan? Please share it…
Yolonda B. Beverly