Here is a method that is helping people thrive during this economy
In today’s economy, it is savings that is saving lifestyles.
While the most common reasons to save money that most people talk about are covering unexpected expenses and making large purchases, here is something else to think about. If you did absolutely nothing different in your life regarding your finances and expenses, it will continually cost you more to afford the same lifestyle. Not only that, there will be new things to buy that will eventually become daily necessities.
Think about it, do you think your parents and grandparents knew they would be buying water in bottles, paying to watch television, and buying expensive smartphones? How could they have properly planned for this if, in their higher-earning years, clean water was plentiful, they watched TV for free, and there was nothing in existence called the internet or WiFi? Consider today,
The rising cost of homes, groceries, dining out, and rent.
Rising medical costs and new illnesses
The increased cost of electricity, gas, and water
Higher property taxes and increased cost of insurance
Artificial Intelligence (AI)
Newer items that are becoming a necessity like $1,200 smartphones, digital assistants, video doorbells, higher speed internet, and smart homes
So how do you save, keep up with rising costs, and still have lifestyle amenities? The answer is consistency. Here’s what I mean. Decide to save a specific amount of money regularly. When you save and leave your money in place, you not only earn interest on your money, but you also earn interest on the interest. In other words, your money compounds. If you stay consistent with saving, smaller amounts become larger amounts and it is your savings that will save you throughout your life. You’ve heard me say it before, you cannot navigate your money as if life will flow perfectly. Things will happen. It is a part of life. You will have to buy new tires, have an unexpected medical occurrence, and have to have something repaired.
Let’s be honest, saving money alone won’t garner wealth but it is the foundation. As someone I know said, I’ve never saved money and said to myself, that was stupid. My point is, if you are not consistently saving or have a nice nest egg built up, you are jeopardizing having a secure financial future.
If you have debt focus on paying off your debt. If you have debt and do not have money saved, you want to both pay off your debt and save. Why? If you only focus on paying off your debt, when a life situation happens, you risk having to borrow the money to pay for it because you don’t have money stashed away. This puts you back in debt.
The bottom line is, those who are able to thrive in various economies have cash reserves. They are able to make moves when the market declines and when prices fall, and they are able to survive when they are laid off from their jobs and when faced with unexpected financial situations.
Don’t sleep on the power of saving.
The Financial Detox ebook is a great guide and resource for organizing your finances during spring. Grab Your Copy HERE
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