If your car requires pricey repairs around the holidays, do you have sufficient cash to cover it?
Is your only option to turn to the credit card with the exorbitant interest rate?
Give me a nod if money stresses you out.
Every day, emergencies occur.
Tuition rises, cars collide, pipes break, technology fails, relatives die, and life expects you to pay up.
Humans are in constant need of items that continue to keep their lives moving in a desired direction, but they don’t always have the necessary funds to cover their expenditures.
According to America Saves, “From 2008 to 2010, Americans with a savings plan with specific goals fell from 62% to 55%…and those who save for retirement at work fell from 55% to 49%.”
That means that nearly HALF of Americans are not saving their money for the future. That is approximately 155, 430, 210 people who will be in debt upon retirement.
These are embarrassing statistics.
As a college student and a hostess at a small restaurant, I do not make much money. Regardless, the money that I do earn, I save.
One effective way of saving money for me is using the envelope system. It’s simple, efficient, and is a constant reminder of your financial goals.
The first thing I do is make a list of my financial goals, the amounts needed, the deadlines, and how much I’m going to put away per paycheck/month. Some examples are: travel, groceries, car repairs/maintenance, clothes, entertainment, and gifts.
So, it would look like this:
These are categories that are beneficial when using a cash method.
Savings for investments, school, and IRA should be managed through a bank account.
If you use this system for a couple of months, and you are fortunate enough to see your savings increase in your selected categories, you will receive a feeling of security and wealth.
You will be prepared for the annoying, little emergencies that life so graciously hands to you.
Most importantly, stress will get a big kick right out of the door.