On Monday, January 1st, a lone ticket in Michigan state was the winner of the $810 million Powerball jackpot. I’m constantly talking about wanting to win the lottery. The problem is I don’t play enough. The purpose of wanting to win is to work hard but by not clocking in on someone else’s time. Now, the chance of winning a big jackpot is 1 in 292 million. So, how can we get more money in our pockets and save when we are the 292 million who do not win?
Most people work hard, pay taxes, and still live paycheck to paycheck with very little to no savings. There are some people who engage in this pattern without financial knowledge. There are some who know but don’t know how to apply strategies. In the end, this cycle of financial hardships is a job for seasoned adults to learn and then teach younger generations. The earlier this is done the better the future outcomes.
My financial journey began in childhood. One of my earliest memories is getting a weekly allowance. I enjoyed saving my money and watch it collect as I spent my parent’s money. Then, when I got older my father gave me an increased allowance of $20 every 2 weeks. I thought I was rich! I continued to save my money, but bought gifts for myself and others on occasion. After, I began asking my mother questions which ended in me getting a savings account. Each month, I received my own statements and was able to monitor my funds.
This idea of saving and/or obtaining more money is very important. It’s the precursor to financial stability. Having a little extra money each month is a bonus. I even made it the challenge of the month in April 2023. The steps to getting there is an adjustment, with some of the steps below, it is possible. What are some of the steps you might ask?
- Automatic Savings Transfer: Having a checking and savings account is great for this. When you have both accounts you can set up automatic monthly transfers from your checking to your savings account with any amount. So when your paycheck comes into your checking, this amount will go to your savings. As the saying goes ‘out of site, out of mind. ‘ But in this case out of the checking and watching savings grow. JUST MAKE SURE TO NOT TOUCH THE SAVED MONEY!
- Enroll in Cash Back Credit: I have 3 credit cards. I have one attached to my bank and two attached to a store. With my bank card, I get cash back on all purchases. With the store cards I get cash rewards towards store purchases. With the bank card, I can transfer the money into my savings account. With the store card, I can use the funds to treat myself or buy gifts.
- Make a Budget: Set up a list of all the bills you pay and assess the money you have coming in each month. If your bill cost are more than your income, see where cuts can be made. Or you can change service providers. Here are some budgeting sheets to help, Example 1 and Example 2.
- Cook at Home: Buying ingredients from the grocery store has gotten pricier but it is still cheaper than ordering takeout or eating at a restaurant regularly. When you cook at home you can make enough for a few days and freeze accordingly. Or you can take some for lunch at work, reducing additional spending. My allotted lunch time is only 30 minutes, so this makes the best option instead of ordering outside food.
- Reduce Subscriptions: We live in an age of increased subscriptions. There are many streaming providers for television shows, movies, and music. Also, there are magazine and newspaper subscriptions. Having 1 streaming service for maybe ~$10.99 is one thing but when you have about 5 different services at that rate, it add ups fast. Then factor in paper/digital publications prices which are often cheaper. Most times we only use 1 or 2 services the most, so cutting a few can save coins.
- Pay Extra on Debt: We all have various debts. Each month when you make your minimum payment amount, see of you can find some extra money to pay a little bit more. Minimum payments will keep you in debt longer as each month new interest is accrued. If you get paid biweekly, pay your minimum when it is due, but see if you can pay a little more with the other check.
- Multiple Streams of Income: If you’re single this may be easier to do, but if you have a family see if can find supports. Making a temporary sacrifice by taking on an additional job or starting a side hustle can bring in additional money. In my field of Occupational Therapy, the need is high and for about 3 years, I juggled my full time job with two smaller jobs. This allowed me to save money to assist in putting a down payment on a home. Now, I only work my full time job and one small job as I try to figure out my passion for sewing and this blog site.
- Investments: Whether using your job 401K plan or getting an IRA plan, the earlier you start putting money in the more you will have in retirement. Many are living to older age, and unless you want to work until the end of life, this is of great help. You can put in any percentage of your income. The less responsibilities you have the more you should put in especially while younger. This gives the money more time to accrue interest. Also, you can always adjust the amount you contribute.
In the end, saving money is not easy, but it is important. The state of our country and the world itself today is different. We should all do our best to making savings a goal in 2024. Plus we should all make sure we educate ourselves and others in trying to get there. I want to be rich in knowledge today to be comfortable financially in the future.
Below you will find a clip from “A Whole Lotto Trouble” episode of one of my favorite shows, Martin. You never know, one day, one of us may become a millionaire.