Save now, while it’s easy

Save now, while it’s easy

How much of your paycheck each month are you saving? Are you even aware of how much you are saving? Saving is a crucial and necessary part of our monthly budget, regardless of whether you are right out of college, or right about to retire. Without saving, you won’t be able to survive a rainy day, an emergency, get out of debt and onto the right financial path, or even retire. Can you imagine making it to 65 and facing the realization that you’ll need to keep working? Setting aside some cash each month for many of us will determine whether or not we break free from the bonds of debt and living paycheck to paycheck.1106132134

Exercising self-control

Regular savings takes discipline and self-control. No only do you have to have the discipline not to spend all of your paycheck each month, but you also have to have the discipline to not spend your savings the subsequent months! Go ahead (if you don’t already) and open a separate savings account for yourself. Make a commitment to yourself to not touch that money, until the time is right. Once you’ve made that pact with yourself, go ahead and get in the habit of saving each paycheck. Adopt a motto of looking out for #1, and start paying ‘yourself’ first each month. Before you pay your rent or bills (although be sure to still pay them), move some money into your savings account. By getting in the habit of saving, you’ll slowly start to see your financial situation improve!

Save a little, save a lot

Depending on your financial situation, the amount you save will vary from one person to the next. Some of us will have higher debt payments, whether that is student loans or paying down a credit card debt. Others of us won’t have that much extra in our budget, and will find our bills taking up a big part of our month income. The point about saving is to do it. Ideally you’d be saving about 25% of your paycheck (including retirement), but I realize that’s a lofty goal. Even if you’re only able to set aside $50 each month, that’s better than nothing! Once you get in the habit of saving, you’ll slowly start to see your finances improving. You’ll start to feel free from the paycheck-to-paycheck mentality, and money will become less of a stress in your life. Hopefully, as your finances improve, you’ll be able to save a little more each month, getting closer and closer to that 25% goal!

It’ll never be easier

Let’s face it, although we like to pretend we have major things going on in our lives, we really don’t. We’re at a pretty unique time in our lives; a season of our lives when our time is maximized (few commitments) and our expenses are minimized. Kids, retirement, safe cars, are for the most part, distant thoughts. A lot of us (and rightly so) are more concerned with our weekend plans than we are the distant future. We’re a here and now generation, and we’ve adopted the mentality to worry about things when they come about. As much as I enjoy adopting the YOLO mentality, I think that we all can admit that a lot of the stuff we spend our money on probably isn’t the best use of our hard earned money. We could probably due without dessert at dinner, have one less drink at the bar, and not buy so many clothes that we’ll donate to Goodwill next season. Being a young professional is a time unlike any other in your life, and although it’s not easy, stocking away money each month into a savings account might truly be a life-changing decision for you!

Whether you’re saving $10 or $10,000 each month, get into the habit of saving each month. Being a yopro is such a unique time, with minimal expenses hanging onto you. While you should definitely enjoy this time in your life, make a good decision and save some of your paycheck each month. Saving now will pay huge dividends down the road and your future self will for sure thank your current self for being so wise!

Don’t have a savings account? Don’t have a good savings account, you know one that pays you more than a couple of pennies each month? Do what YMF did and open a Capital One Savings account. It’s a free online bank (FDIC insured, duh) that pays 0.75%, instead of the 0.01% your other bank is paying you. I’ve ditched my regular bank and keep most of my savings money in this account. It’s a no brainer!

 

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