When we do not have extra money coming in, and barely enough to even pay the bills, how are we to build a savings? In the last blog it was said that we should keep an egg in our basket, What if you don't even have enough eggs for breakfast?! How can you leave even 1 if you need more?!
The answer to this is to pay yourself first! What do I mean by this?
Many of you reading this blog are faithful members of some sort of christian religion, what ever it be. We are expected to pay tithes. Would you go with out paying your tithes if things get tight financially? Of course not. You believe that if you pay, then you will receive blessings. And right you are.
The same is true for paying ourselves. The fist thing you do with your money is pay your tithes, then immediately pay yourself. I prefer the 10% method as well for myself as I do tithe. Put your money somewhere safe, and DON'T TOUCH IT!!! You will quickly find that you do not miss the money, and for some reason things seem to work themselves out.
We are prone to spend all we have. By paying ourselves first, and keeping that money "sacred", we will not spend it. We can begin our savings. We will be able to keep an egg in the basket with out missing it at the breakfast table.
I have a friend who is committed to saving a certain amount of money. He told me just recently that he has added over $2,000 to his account in just over a month. No big deal, anyone could do that, right? The kicker is that my friend does not have a job, has an empty tank in his truck, and is looking for his next meal any where he can. However, he has kept his commitment to himself to save a certain amount each month. My friend may be the extreme example, but a good one to follow.
What is keeping us from reaching our savings goal?
as a side note: if there is a topic you would like to discuss, please let me know and I will do my best to cover it.
Money Pools and the $1,000 Emergency fund
14 years ago
Ya... I really should be doing these things already...
ReplyDeleteYou wanna make a budget for us? ;) Just kidding.
-Jessica
This is one of the hardest lessons to learn. On the same line as tithes- if our priorities should be first God, second our families, third ourselves, fourth everyone else- then why wouldn't we pay God first, our families/ourselves second, and then everyone else last? Sean and I are trying to save for a downpayment on a house in SLC when we are able to move down, and the 10% method is what we're going to try to use. We'll see how it goes.
ReplyDeleteI am really enjoying your blog and the real life exapmles you are using. I very much liked your TV/Pig of a truck comparision. I thought how right you were and how nice it was that even though you thought TV to be a waste you respected that it may be something smoe one else would value and could rightfully budget for. Keep up the good work Kid!
ReplyDelete