Do you remember the first time you got a paycheck? Not money from babysitting or helping fix someone's car but your first actual paycheck? You probably remember that feeling you got when it hit your account (for millennial's) or when you picked up a check from human resources. What a feeling!! You finally had money that was yours that you could use on items you wanted. Wrong.
That first paycheck probably went to your rent, groceries, or student loans. You didn't get to enjoy as much as of it as you really wanted to because good ole Uncle Sam took a pretty hefty portion of it and then you got the leftovers. But if you were smart, you took a portion of that check and put it into a savings account. Maybe only $50 but you were saving it for something you could really enjoy.
And then life happens. Your car breaks down, your AC quit working, and you've lost your job. Now you have to use that hard earned money that you were saving. Or do you? There is that plastic thing sitting in your wallet. Staring at you. Reminding you that you have a $10,000 credit. It's okay to put this one thing on your card right? Wrong.
Life happens. We know this. That's why with the Dave Ramsey plan you have a $1,000 emergency fund as well as a 3-6 month savings for the things that happen in life. These funds are not for your extra spending money they are for your emergencies. For me, it is so hard to remind myself that money is not for leisure spending. While we would all love a new wardrobe each season and to take a vacation every quarter, that may not always be in the budget.
Once you have these savings built up then it is time you start saving for yourself. I know you are thinking, "and where do you suppose I pull that extra savings money? From my paycheck that is already being spent on a mortgage, utilities, groceries, and other subscriptions?" Yes, somehow you have to make yourself a priority. Find a way to save a dollar for yourself. Give up that Starbucks, forget about that concert. Take that money and invest it in yourself. Put it in a savings account where you can purchase a car with cash! Go on that birthday trip you've been planning for yourself! Buy a new couch, rug, TV! You deserve it.
But make sure you are prioritizing and saving for your life. Your emergencies. First. I am not extreme enough to say nothing goes on a credit card but if it does, make sure you pay it off in the month. Don't waste your hard earned money on interest. You will dig yourself into a hole where you put everything on your credit card. Then your second credit card and maybe a third if it gets really bad. Then you will never be able to save for yourself. You are worth it to take YOUR money and spend it on something you truly want/need.
Comments