By: Vincent Mortensen
As Americans, we find it pretty easy to spend every dime we have versus saving for a rainy day. There are so many cool things we can buy such as streaming movie sites, the cool new smartphone, that purse you must have, and many other things. In short, we LOVE our stuff. There is nothing wrong with loving stuff, but we must love ourselves first. The greatest way we can love ourselves is financially securing our future. Below are a few tips to make sure you pay yourself first before you pay for wanted items.
- Direct deposit – This is one of the best ways to save money. When money is directly deposited into a savings account that you will not touch, you don’t see the money. If you don’t see the money, you probably won’t spend it (except for emergencies, of course).
- Trust someone – If you have a close family member or friend that you can trust with your money, feel free to give them a portion of your pay every month. Have them hold and hide the money for you. No matter how much you beg or plead or moan, tell them to not give it to you unless it’s an absolute emergency. The pizza man is not an emergency.
- Fund your 401(k) – If you have a work 401(k) to contribute to, do it! Not only will your money grow over time for retirement, you will be penalized by the government if you take it out early. It’s a behavioral win-win situation. Also, if your employer matches your contribution up to a certain percentage (let’s say 3%), that’s free money you’re not tapping into. Take advantage!
Saving money isn’t as sexy as purchasing a nice blouse or a new ATV. It IS comforting to know you surpassed your wants today for a safe and prosperous financial life in the future. As Murphy’s Law states: If it can go wrong, it will! It’s not IF you have a financial emergency, it’s WHEN.