If You‘re Not Saving Yet, It’s Time to Start. These Three Simple Tips Will Get You On Track in No Time
There’s all kinds of information out there about how much we should be saving, and most of it is crap. Guess what? Last year, a study showed that women’s biggest regret was not saving more money. For most of us, if we’re saving without a plan, we’re probably not saving enough.
No matter your age, I recommend that you save a minimum of 20% of your pre-tax income. For the rest of your life. Starting today. No excuses.
That means if your pre-tax income is $40,000 per year, your minimum savings goals needs to be $8k.
Yes, I know you have to pay taxes. I’m aware you still need to live.
If you’re underwater on your bills, or in a crazy amount of debt, ratchet that number down to 10%, and set a goal to increase it by 1% per month until you hit at least 20%.
It isn’t. Last year, I led a small group of women to save $10,000 each in less than a year. Some of them had families, and an income of around $15 per hour. At that rate, we’re talking a savings of about 33% of pre-tax income.
If they could it, so can you. Here’s how to start:
Be ruthless with your spending. It’s time to think like a CEO looking to boost the quarterly earnings report. Everything that doesn’t add value has to go.
If there are unchecked numbers in your budget, now’s the time to dead that. Check your budget for any subscriptions you’re not using. Kill any magazine delivery.
Increase your earn. Unless you’re working 24 hours a day, there’s something you can do to increase your income.
Whether it’s driving for Uber, starting a side hustle, or selling your amazing body butter, launch that thing and create a new income stream.
Stay committed. If you’re working extra hours to improve your finances, or digging yourself out of debt, it can feel like you’ll never see the light at the end of the tunnel.
No matter how bleak things seem, if you stay on track and keep taking action, you will get there. Even if you have to start by saving 1% a month, one is better than zero.
Start to right the ship, and providence will move in your favor. Never give up.
Have you started your wealth journey? How much are you saving each month? What tips & life hacks helped you reach your goal? Share your story in the comments.