- February 2012
- December 2011
- October 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
Home Finance Tip: Pay yourself
October 20th, 2010 | 
Author: 
Our Saturday Home Finance Tip deals with your savings account. If you are asking, “what savings account?” this article is for you. Saving is a financial musts that many people do not do. It takes a high degree of financial discipline so if you are one of those who has a savings account, take a second to congratulate yourself.
Financial advisors differ on how much money we need in our emergency funds but they seem to agree on a 6 to 10 month range. How do you calculate that? First you have to know how much you spend each month. You will always estimate low so get your bank and credit card statements out and add it all up. Take that number and multiply it by 8 months (or somewhere in that 6 to 10 range) and that’s your goal. Once you’re there, keep it in a savings account. It can’t be tied up in a CD and you can’t risk losing it in the stock market. (By the way, I strongly suggest that you add disability insurance to your monthly expenses. It’s cheap and if you became sick or hurt, the monthly bills will be out of your mind)
Now that we know how much you should save, you brain might be in overdrive thinking about how you will fund your savings account. It’s going to take discipline but here’s a fun way that will put some big money in your savings account over time. You can think of it as my Chick-fil-a method. I love Chick fil a in part because the food is good (hey chick fil a, are you reading?) but also because they give out coupons all the time. I would have gone to Chick Fil a and paid full price without the coupon but with it, I saved $4. That $4 goes in to my savings account. Because I put everything on my credit card and pay it off at the end of the month, I get rewards points. I always buy $50 gift certificates with those points. Guess where that $50 goes? Let’s take it a little further. Rather than going to Chick Fil a and getting a chicken sandwich and waffle fries and a diet coke for $9, I go to the grocery store and pick up a pack of chicken breasts and a couple of potatoes and drink water. First, I’m saving calories but I also saved $5 by not eating out. I ironed my own shirt rather than taking it to the dry cleaner, $2. So let’s see; in this article alone I saved $70 and have a sizeable amount for my savings account.
Keep a 1 week journal and see what you can do to pay yourself. It’s fun, it’s a challenge, and you will feel better about getting closer to your financial goal. We are not in an economy where we can count on having a job tomorrow. Economists predict that 1 out of every 10 working Americans will not be working before this recession is over. Don’t forget about this week’s home finance tip. If you need it, you will be grateful that you have it.
Related posts:
Posted in 
Tags:
Unbelievable, that is precisely what I was seeking for! This article just saved me alot of digging around
I love the way you write and also the theme on your blog. Did you code this yourself or was it done by a professional? I’m very very impressed.
i’d look for more information on this … btw do you have a facebook page ? bookmarked your site …
it was great to know about this … getting more info on this topics ..will post the updates here ..
…
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You clearly know what youre talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?
Great post, really help me a lot. Thanks.
I most certenly like your innovative angle that you have on the topic. Certainly wasn’t thinking on this at the time I begun searching for tips. Your ideas was totally simple to understand. Happy to find out that there’s an person online that obviously understands precise what its is talking about.
Youre so right. Im there with you. Your blog is definitely worth a read if anyone comes across it. Im lucky I did because now Ive got a whole new view of this. I didnt realise that this issue was so important and so universal. You definitely put it in perspective for me.
I have been able to work with weights now that I am in high school, and I want to learn which vitamins and minerals to take. I want to take only natural things and FORGET anything like steriods. No way am I gonna mess myself up. Anybody have any advice?
Wow, all those fuel prices really are growing to be outrageous. I am going to have to get some sort of financial loan simply to fill my own suv every week or so. This is now beginning to get ludicrous!
Charlie Sheen is without question this sort of a fool. Come on, man, is everybody really stunned from the man’s activities? At this point, you would probably think we all would certainly expect as much.
It was something of great excitement coming across your site last night. I got here this day hoping to learn interesting things. I was not upset. Your ideas on new solutions on this area were useful and an excellent help to my family. Thank you for having time to write down these things along with sharing your ideas.
We actually enjoy the new Spartacus Gods series, it’s just a bit much overwhelming physical violence personally. No way might I allow the little ones watch this ever, but it can be entertaining generally speaking.
great web site you have ghere btw
I love when you talk about this type of stuff in your posts. Perhaps could you continue this?
I can’t comprehend how much snow which has dropped since last evening. Our own 8 yr old taking his 1st holiday for snow country in the wintertime. He’s getting his money’s worth. The snow in our own property is deeper than this guy is without a doubt big, so he’ll like that!