I’m going to assume for a moment that you have made some adjustments and you’re on track to build your emergency fund (there’s just over a month to go to reach $1000 by the end of the year). So what else should you be setting your sights on? There are many big things in life to plan for… education, wedding, retirement, home purchase, etc. Each of these is a significant financial commitment and requires that you save, invest and strategize correctly. There are also many things that might come along to protect your family against… medical expenses, untimely death, etc.
Your financial life is a balance between handling your responsibilities, building toward your goals and protecting against setbacks. You need to consider all three in your planning. Your financial foundation can’t stay small if you have big dreams, so you must go for growth. If you only focus on growth, however, what if the market turns against you or you suddenly are injured and have large ongoing medical expenses? Everything you were building could be wiped out. Can you find a good balance that includes all three – the safety of not losing, real growth potential and protection just in case?
Believe it or not, YES! That’s exactly the situation we help clients create for their families. There are solutions in the industry today that let you craft a beautiful balance in a simple, understandable package. You don’t need a finance degree or sophisticated tools to keep these plans working for you for years into the future.
You’re probably wondering what this solution is… Well, we can’t give individualized advice here, but we’d love to have a conversation to look into your options. Schedule a quick call (https://calendly.com/financialfoundation/phone15) and we’ll go from there.
How is your progress on saving an emergency fund? Your assignment is to have $1000 saved at the end of the year, and let me make this clear… Black Friday is not an emergency!
As the holidays approach, retailers are doing their best to whip us all into a shopping frenzy. Never-before-seen savings on certain items make us feel like we HAVE TO buy them right now. We head into a store with one or two specific targets in mind, but then walk out with 7 or 8 items because, “hey, I’m already here and it’s on sale…” But keep in mind that some things really are on sale, while others only look like they’re on sale. Don’t get caught up in the hype!
What if you can take a step back and evaluate what you REALLY DO NEED? If you can’t resist diving into the fray of Black Friday, Cyber Monday, and all of the other deal-o-ramas, you should first make lists, set a budget and then find a way to keep yourself disciplined. Who are the specific people you’re shopping for? Are there meaningful gift options that don’t cost much? Are there items where you can find off-brand versions or last-year’s model that are still good, but less expensive? How much can you actually afford to spend (not charging everything on a credit card and paying it off for a year)? What if you left your cards at home and only brought the amount of cash you budgeted? Or maybe use a debit card, but first make sure there’s only the amount you want to spend in the account at the time of the shopping trip (by transferring the rest to savings before and then back after)?
And for children… kids don’t need much to play – they’ll invent fun out of whatever is laying around, so expensive gifts probably aren’t necessary. Kids spend too much time stationary and experiences can create memories that last a lifetime, so instead of game systems and other electronics maybe consider a camp, trip, art activity classes, membership to an activity group or sports team, etc. If it’s a significant cost, pool a group of family or friends together to make it happen.
We’re heading into a wonderful time of the year and it’s good to be generous. But please keep the bigger picture in mind. Make sure that along the way you’re still building your future, and the start is your $1000 emergency fund.
Did you start to implement the last saving idea we shared? Please share your progress… If not, please decide to take action. Your future self will thank you
Here’s another saving idea you can implement starting today. The more of these ideas you implement, the more momentum you’ll gain!
Think about all the subscriptions you have… TV, music, store clubs, gym, monthly clothing or makeup boxes, magazines, professional services, etc. Are any of those monthly payments going to waste? You have them just in case, but in reality you never use them? Are you overpaying for something where, with a little research, you could reduce your cost? Do you maybe have multiple subscriptions that overlap in purpose and one could be cancelled?
Many people start a subscription and then over time don’t really think about it any more. At first, it may have been exciting, maybe indispensable, but things change. Maybe you don’t have the same need or desire any more. Take a look at your subscriptions and see what you can cancel or cut back on. Since you were used to those payments already, take the difference and channel it into savings for yourself.
Again, the first goal is to build a $1000 emergency fund. Can you accomplish that by the end of December? Take steps now to make November and December the time when you truly develop a healthy saving habit!