Finances

I wish they required a budgeting and finance class in high school.  I've never been that good with money until a couple years ago when I took an interest in it and started watching Suze Orman's podcast.  I became a devoted fan.  I bought two of her books.  I educated myself.  Now, finances are one of my new favorite topics.  As one who always has been a spender in a way, I'm discovering how great it feels to build up an emergency fund and retirement.  I'm realizing how great it is to have a back up plan if something goes wrong.  And I'm realizing how EASY it is to save!

Here were my steps:

- Write down EVERYTHING money related.  Checking accounts, savings accounts, debt owed, student loans, etc. etc.
- Write long term and short term goals.
- Set goals into action.

It's pretty simple once you think about it.  And I love goals so it's almost like a challenge to myself.

My first small goal was to build up $1,000 in an emergency fund.  I called my bank and set up a new savings account.  I put $50 into it, and set up an automatic withdrawal from my checking twice per month for $50.  I just let it be, and I didn't even notice that money was gone.  I also labeled that savings account "Can't Touch This" so I remember that this is for emergencies only.  If ever I had "extra" money, I put the majority of it into that savings fund.  Tax refund, selling my car for more than expected, bonuses from work.

Well, I made that goal in less than 2 months.  It felt great.

I crossed that off my short term goals list, and increased my goal to $2500 in an emergency fund.  That's still in the process, but I love seeing the number go up and up and up.

I realized I was making a TON of excuses for myself as to why I didn't start saving earlier.  I didn't think I could, I was living paycheck to paycheck, and it seemed overwhelming.  But in reality anyone can start to save.  Even if its $5, $10, or $20.  That's something.  Something is better than nothing.  At this point if anything happens to my car or if I'm unemployed for whatever reason or if I get sick or if my cat gets sick, I have a back up plan.  That feels so GOOD.  It helped me to get rid of the excuses and now I just suck it up and do it.  Some day I'll have my goal of an 8 month emergency fund, but for now I think I'm doing pretty good.

I have a lot of goals left on my list.  Pay down my debt.  Work towards paying off the car my parents bought for me.  Eventually start a "rainy day" fund for extras like a future down payment on a home, new furniture, travel, etc.  I want to be financially stable; if at some point an emergency comes up I want to be prepared.  Whenever I get married I want to have money saved.  It's still really overwhelming, but I'm just taking it one step at a time.  That's all you can do.