This month I’m exploring finances and money and how to deal with it all.
So this is not me giving advice necessarily, it’s intended to be a conversation.
I’ve made some progress on my goals since last week. My goals for this month, just to reiterate, are to learn:
- How to streamline and minimize monthly expenses
- How to still have fun while saving money
- What I need to do to have a savings account for emergencies, for fun, and for retirement
- How, what, and why to invest
So what I learned this week to share with you relates to having an account to save for emergencies and to save for trips or fun things.
Thanks to you guys for recommending Dave Ramsey’s 7 Baby Steps, which don’t all apply to me because I’m fortunate enough to not have debt, and I don’t have a mortgage or plan to have kids. However, I think the other steps are still very relevant and give me some smart framework.
Dave’s steps are:
- Save $1,000 for an emergency fund
- Pay off all debt but the house
- Save 3 to 6 months of expenses in emergency fund
- Invest 15% of income into retirement
- College fund for children
- Pay off home early
- Build wealth and give
This week I continued to read “Money: Master the Game” by Tony Robbins, I purchased Dave Ramsey’s “Complete Guide to Money,” and I opened up two bank accounts for specific reasons.
So I now have three accounts:
- I already had a checking account for paying bills and spending money on things like food and pet supplies and whatever
- I opened a checking account for emergency fund savings - this way I can allocate a certain amount of my paycheck to go to that account and it is not as easy to spend that money as it would be if it stayed in my regular checking account
- I opened a savings account - this one is for a trip/fun thing fund - I can allocate some of my paycheck to this as well because life’s short and I want to also have fun while I save
So each week, I’ll be putting money towards my emergency fund as well as my trip fund.
I have a certain amount that I’m aiming to allocate to each fund each week, which has been calculated based on a monthly budget I have created for myself. I’ve been budgeting for a while now and some months I’m better than others, however I feel that having separate accounts for these savings will be tremendously helpful because once I transfer the money out of my regular checking, it’s out of sight out of mind.
My next steps will be to work with my budget and fine tune it while figuring out how to still have fun. I think this will look like not eating out as much and doing more things that are free. I am excited to explore.
I also will be researching more about how to save for retirement and invest.
So next week I’ll share an update on my process.
Please share any resources you have, I think we can all benefit from them!