This week I am giving you four words that are the keys to your financial turnaround. I have given you the first two: BUDGET and WORK. If you want to read those posts, click here for BUDGET and here for WORK. Otherwise, here is your third word.
Word #3, Save - Proverbs 6:6-8
Once you start budgeting and working you can begin saving. Maybe you are already budgeting and working, but saving . . . not so much. Why not? Probably because the budget is too tight and there is nothing left over to save. And there’s the problem. Savings don’t come off the excess, they come off the top. Saving money must be intentional, not accidental.
Making room for savings is critical. For one, you never know what a day may hold. We all need an emergency fund. An oil change every few months won’t break the bank. Replacing your AC unit in July will! Save for it. Life isn’t perfect. Things break. People get sick. You may miss work. If you have money set aside for such a time as this, you have immediately eliminated a great deal of worry and stress.
Another important aspect of saving is learning to pay with cash. In a consumer driven economy it is easy to throw down a piece of plastic and get what you want even if you can’t immediately afford it.
You may not have the the $1100 for that 4K flat screen you really want for your Super Bowl party, but the retailer has made it easy for you to have it now! Buy it now - pay later. $35 a month. You budgeted for it. You can afford it. Why not?
The problem is in what you REALLY pay. In a standard consumer credit deal at 18% interest, your $1,100 4K TV will actually cost you $1,431! Stores don’t extend credit to you to make it easy for you to get a TV from them. They extend credit to you so that they can make it easy for them to get more money out of you.
Saving money, SAVES YOU MONEY! Saving money eliminates stress! How much would it ease the burden on your mind to have a few thousand dollars set aside in the bank? How great would it be to go on vacation in June and not be paying for it until December? How merry would your Christmas be if you were not paying for it until April?
If you budget, work, and save - you pay for what you need and truly enjoy what you want!
So now you have three of the four words. BUDGET + WORK + SAVE + _______ = your financial turnaround! Tomorrow, we will finish the equation. Until then, share with me; what is your biggest hindrance to saving money? Do you put away a little money each week for vacation or maybe for Christmas? What is something that you saved for that gave you great satisfaction when you bought it?