First Step You Can Take Toward Financial Wealth
One step that you can take towards Financial Wealth is savings. The trick to savings is not having a bunch of cash available to you any time to feel like it. You need to have a purpose for it if not you are sabotaging yourself. So here is the deal, You can start a simple savings and money management system that takes what you already spend; this alone will bring you great benefits:1. You create a new tool that helps deal with the emotional ups and downs related to money habits like i.e. Shopping2. You can become more money conscious and make better choices about how you spend your money3. Funny, but you will actually spend less4. You will begin building your “money muscle” and begin to avoid the pitfalls of the “buy now pay later.”The basic for savings is very simple. It is to create the “habit” on new behaviors around spending and assist you with your money personality. One easy way to create a habit is to create a system. It is something that you can do every time the same way so there is no excuse. If you haven’t heard of the Money Jars this is a perfect time for you to be introduced to the concept.You need 6 jars that will work as your visual reminder, and therefore, memorable. Each jar has a name which also represents a different saving account. Every time you get a pay check, you will take out a portion of each check and place it in the corresponding jar (savings account).Jar 1: Financial Wealth Fund 10% of your check This money is save for future investments that will help you accomplished your financial wealthJar 2: Fun Fund Jar 5% of your check This jar is your fun fund and it is for anything that you consider “fun to do”Jar 3: Giving Fund Jar 5% of your check The more you give the more you get… so pick a charity of your choice and share some of your earningsJar 4: Savings Fund Jar 10% of your check This is your savings for those things that come up and we are never ready for, the leak in the roof, the plumbing issue, etc.Jar 5: Me Fund Jar 5% of your check This is the money for personal and the only money you can use to buy those things you really want but shouldn’t.Jar 6: Living Fund 65% of your check This is the money you can use for your daily living. The ideal will be to have your Jar 6 be only 50% of your total check and increase the percentage of Jar 1.You can also play around with this and instead of Jar 5 to be a “me” jar, may be you want a “Christmas Jar” or a “Travel Jar.” The choices are endless. Saving without consistency and discipline will put you in the same place you are right now!Yours in Wealth,Monica Beltran
