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MONEY SMART
Pathway to financial freedom
This is why i am teaching this free class so that you can understand that no matter the reason for your debt you will always be a slave to it.
Everyone has a different financial situation, so baised on yourdebt and your commitment will determine how soon you are able to put down the debt for good and pick up your financial freedom.
- iN THIS CLASS I'M GOING TO EXPLAIN
- The choices that you made that got you in debt
- Steps to take to get out of debt
- Why an emergency fund is necessary
- How to determine how much rent/mortgage can you afford
- How should you pay for a car
- When should you start investing
Pay Yourself First: The Power of Saving 10% of Your Income
Saving 10% of your income might sound straightforward, but implementing this rule can sometimes be challenging,
especially if you have many financial obligations. It is a strategic approach that makes the individuals consistent in saving and future investments. Here’s how you can successfully put this rule into practice and why it’s so beneficial for your long-term financial health. In The Richest Man in Babylon, one of the most valuable lessons shared is the principle of making more of your savings income.
1. Set Up an Automated Savings SystemThe first step is to make saving automatic. Set up a standing order or automatic transfer from your checking account to a dedicated savings or investment account each time you get paid. This ensures that you “pay yourself” before spending on anything else. Automating the process eliminates the temptation to skip saving when money feels tight.
2. Adjust Your Budget to Accommodate Saving 10%If you're not saving, adjust your budget to free up 10% of your income. Start by reviewing your expenses and identifying areas where you can cut back. It could be reducing takeout orders, minimizing subscription services, or cutting down on unnecessary shopping. Align your budget around the remaining 90% of your income and stick to it.
3. Start with Smaller Increments if 10% Feels Too HighIf jumping straight to 10% seems overwhelming, start with a smaller percentage, like 5%, and gradually increase it by 1-2% every few months. This gradual approach allows you to adjust without feeling deprived or overwhelmed by the change.
4. Create a Dedicated Savings AccountOpen a separate savings account specifically for your 10% savings. This prevents mingling with your regular spending money and reduces the temptation to dip into it. Consider choosing an account with limited access or no debit card attached, making it harder to withdraw impulsively.
5. Plan for Large Expenses in AdvanceMajor expenses like vacations or holiday spending can disrupt your savings plan. Plan and save for these in a separate fund instead of pulling from your 10%. Being proactive about these costs helps you stick to your savings goal consistently.
6. Monitor and Review Your ProgressTrack your savings progress regularly to ensure you’re meeting your 10% target. Every few months, review your expenses and see if there’s room to increase your savings rate. If your income rises, immediately adjust your savings to reflect 10% of the new amount.
7. Invest for Greater ReturnsDon't let your savings sit idle. Once you've accumulated a good amount, consider investments like mutual funds, stocks, or even a retirement plan. The goal is for your money to start working for you, providing higher returns than a standard savings account.
This article is part of Dataczar Coaching blog series. To better help our customers, We encourage every everyone to read and know this information..
1. Set Up an Automated Savings SystemThe first step is to make saving automatic. Set up a standing order or automatic transfer from your checking account to a dedicated savings or investment account each time you get paid. This ensures that you “pay yourself” before spending on anything else. Automating the process eliminates the temptation to skip saving when money feels tight.
2. Adjust Your Budget to Accommodate Saving 10%If you're not saving, adjust your budget to free up 10% of your income. Start by reviewing your expenses and identifying areas where you can cut back. It could be reducing takeout orders, minimizing subscription services, or cutting down on unnecessary shopping. Align your budget around the remaining 90% of your income and stick to it.
3. Start with Smaller Increments if 10% Feels Too HighIf jumping straight to 10% seems overwhelming, start with a smaller percentage, like 5%, and gradually increase it by 1-2% every few months. This gradual approach allows you to adjust without feeling deprived or overwhelmed by the change.
4. Create a Dedicated Savings AccountOpen a separate savings account specifically for your 10% savings. This prevents mingling with your regular spending money and reduces the temptation to dip into it. Consider choosing an account with limited access or no debit card attached, making it harder to withdraw impulsively.
5. Plan for Large Expenses in AdvanceMajor expenses like vacations or holiday spending can disrupt your savings plan. Plan and save for these in a separate fund instead of pulling from your 10%. Being proactive about these costs helps you stick to your savings goal consistently.
6. Monitor and Review Your ProgressTrack your savings progress regularly to ensure you’re meeting your 10% target. Every few months, review your expenses and see if there’s room to increase your savings rate. If your income rises, immediately adjust your savings to reflect 10% of the new amount.
7. Invest for Greater ReturnsDon't let your savings sit idle. Once you've accumulated a good amount, consider investments like mutual funds, stocks, or even a retirement plan. The goal is for your money to start working for you, providing higher returns than a standard savings account.
This article is part of Dataczar Coaching blog series. To better help our customers, We encourage every everyone to read and know this information..