SERIES: Stategies For Saving Money
One of the largest issues I see during our one-on-one financial counseling meetings is the inability to save money. Saved money is essential to long-term sustainability. Saved money relieves stress. Saved money allows you to take a chance. Saved money allows life to happen (job loss, disability, pay cut, injury, etc.).
But you already knew that part. Yet, even though we KNOW how important it is to save money, most people fail to do so. This series will focus on PROVEN techniques that have allowed many people to save money.
If you have negative savings (no money plus overdrafted accounts and debt), the goal is to bring you to zero. If you are at zero, the goal is to get to at least $2,500. If you have been able to save a substantial amount of money, it is my hope that you will participate in the discussion and share your own tips that have worked well for you!
Part One Automatic Draft From Paycheck
Establish a savings account and have the money drafted from every single paycheck. Whether it is $25 or $250 per pay period – just SAVE! You KNOW that the car is going to break down. You KNOW that the school is going to send home a surprise expense.
By establishing this draft, it allows the money to be "out-of-sight." When money is out-of-sight, it can be out-of-mind. This allows the account to grow without being robbed.
Now, I personally had a problem with this when I did not have a monthly budget. I would ROB my own savings account about 2.1 microseconds after I was paid. Only after I had a plan developed that Jenn and I agreed to did my savings account begin growing in a healthy manner.
How about you? Do you have an automatic draft for your savings account set up from your pay check?
How To Save Money On Groceries
I am a huge fan of learning from others and that is why I am sharing the following links today. I want you to take the five minutes to learn from these individuals on how they are saving a TON of money on groceries using coupons. I personally have been using the same methods and regularly save between 35% and 60% on my grocery bill – on stuff that I was going to buy anyway! It takes thirty minutes or so to prepare a list, but it is worth it to save $30 – $50 on my grocery bill. That is a great hourly wage!
- The Saving Freak shares a recent success story HERE. Read some of his strategies HERE and HERE.
- Jenny at Southern Savers writes about it every single day. She has swiftly become a must-use resource before visiting the grocery store – especially if you are in the South. A great place to start is reading the FREE guides she has written HERE.
If you are paying retail price at the grocery store, you are wasting hard-earned money.
Cash For Clunkers Program
The Cash For Clunkers program has been a huge hit with dealers and has caused a lot of nervous consumers across the line and decide to spend some money. I know several people who have personally participated in the deal, and I believe that it has truly stimulated the economy.
But I am not sure that it is a great deal for the consumer.
The situation creates high demand at the dealership. This can lead to a dealer who is unwilling to negotiate since the consumer is already receiving a rebate. The program has no defined end date (instead the program's web site currently states November 1st or a vague "when the money runs out" deadline that is not measurable by the consumer). This creates an "I have to buy it right now or else I will miss out on a great deal" mentality.
If the vehicle is financed, this "deal" still has the potential to wreak havoc on a person's financial future!
I have seen several deals and NONE of them have "Wowed" me. What about you?
Personal Discipline
Personal discipline. Do you have it? Or do you lack it?
Signs of personal discipline in personal financial management:
- Waiting at least overnight before making a large purchase decision
- Balanced checkbook
- Monthly spending plan
- Saving every paycheck
- Giving every paycheck
- Organized financial documents – including insurance EOBs
- Credit cards paid off in full every month
- Regularly obtain credit report to ensure it is accurate
- Married couples – both know where the money goes and how much they have saved
- Singles – established accountability
Signs of poor personal discipline:
- Overdrafts
- Disorganized records
- Late payments
- Credit cards balances not paid off every month
- Spouses not working together
- Impulsive spending decisions
- Little or no saved money
- No giving
What would you add to either list?
Book Review: Church Giving Matters
A friend of mine recently released his first book, Church Giving Matters, and I wanted to say CONGRATULATIONS to him publicly. His name is Ben Stroup, and he is passionate about the topic of giving.
I was provided the huge honor to preview this book, and I believe that Ben is dead on with his observations of giving within the local church.
This book was written for church leaders and every leader who reads it will be challenged to view their role in a new light. Ben has been the pastor of a small rural congregation while also leading LifeWay's Giving Envelope Service.
It was also just announced that this book has sold 6,000 copies in the first ten weeks! Outstanding – especially when one considers that less than three percent of books ever sell more than five thousand!
Here is what I love about Ben – he is all about providing PRACTICAL information that is RELEVANT and can be IMMEDIATELY APPLIED. If you have ever participated in any event I am a part of, you KNOW how much I value PRACTICALITY and RELEVANCY.
If you are a church leader, you would do well to PURCHASE BEN'S BOOK.