Sunday, October 4, 2009

Start Saving Today For Future Financial Security

By Flea - Be A Survivor

People have lost their way when it comes to money. Many people have no concept of living other than paycheck to paycheck which is quite the precarious position to be in. Saving some money for a rainy day is probably one of those most important things you can do for yourself and your family.

“But Flea I am broke!”
“But Flea I don’t make that much!”
“But Flea there ain’t anything left after I pay my bills!”

These are the excuses I can already hear in my head as I write this post. My response to them is, that is the weakest BS I have ever heard in my life. There is always something that can be put away and if there isn’t maybe you should adjust your position by getting a side job or finding a way to make some extra money (legally of course).

My wife and I started very small when we started our first savings account. We both work and we elected to put back $100 a pay period. We get paid every two weeks so that worked out to $200 a month. That account now has several thousand dollars in it DESPITE the fact we had to tap it for a few thousand a couple of years back.

The key to success is to pretend that money DOES NOT EXIST! Make it difficult to get to and adjust your spending so that the money that goes into the account is never considered in your spending. We soon learned to live without the extra $200 a month. We also used a passbook savings account so that it was more difficult to get to than using a few clicks of a mouse button.

The best thing to do is to have the money directly deposited into your savings account. This will ensure you never see the cash, make regular deposits and above all avoid the temptation to spend it rather than save it.

We consider this account money of last resort which means we really need to be in a pickle to have to tap into it. The power of interest has helped as well, although a money market savings account or CD might be a better choice if you want to maximize interest.

There is no excuse for not having some savings put back. You are placing yourself and your family in danger if you do not. Start with whatever you can afford, even $20 a month will get you headed in the right direction. The key here is to start, lack of action in this area is setting yourself up for a real disaster in the future when you will be forced to incur debt or do something crazy to make up for a financial shortfall.

Get started with a savings program today to give financial security and peace of mind to yourself and those you love.

...that is all.

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3 comments:

  1. Good post Flea. No matter how small the amount, putting at least something back each pay period will get you in the habit of saving.

    matthiasj
    Kentucky Preppers Network

    ReplyDelete
  2. Excellent post. In this case, any action is better than none...and like you said, the secret is to forget it even exist at all!

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  3. I agree, Flea. Our income fluctuates because Yeoldfurt's work fluctuates. But when his work is good and money is flowing, I pay the bills for the week and move all but what I absolutely need to get by to the next paycheck from checking to savings. I also try not to pay 'bills' with anything but the paycheck. In other words, if we get a refund check or a dividend or any other 'nonpaycheck' money to deposit, it goes in savings ...not checking. We've had to tap into savings to the tune of thousands of dollars at a time too, but without having the mindset to HAVE savings, what would we have done? Good post.

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