Are you trying to live on a shoestring budget without any success? This year has been hectic to say the least, moving from Toronto, Canada to begin a new chapter in my life with a new job and a new location in London in the UK, my life is now in overload and I’m somewhat overwhelmed. I am examining how my finances are being affected by my new lifestyle and I’m making changes which will offer me more financial freedom in the years ahead. To take control of my finances I’m trying to get a handle on where my money is going so that I can effectively manage the funds that I have for emergencies as well as my basic needs. It’s not always easy being frugal when your friends aren’t but there are important results that can come from taking some steps to saving a part of my salary for a rainy day.
Why Saving is Important
I’m a 20-something and have decided that this is the perfect time for me to start saving. I’ll be working for the next forty years so getting an early start will add to my financial freedom when I need it the most. The powerful tool that I have on my side right now is time. I’m in good health, have a budding career and I’ve recently decided to make the commitment to starting a good savings plan as soon as I can.
When I first began getting my pay checks, I didn’t think that I could afford to save but once I began to look at where my money was going I knew it was time to make a big change in my habits. There are plenty of areas where I tend to waste money which I could just as easily be putting away for a crisis that will demand that I pay for whatever is needed immediately. I have eliminated extra trips that aren’t necessary, eating out with my friends more than twice a week, and am trying to curtail my entertainment expenses as much as I can. Renting movies at home with friends can save a great deal of money that I’ll need for other, more important things. I’ve devised a way to save my money before I can get to it and spend it without thinking; having a plan is the best way to begin saving and I’m determined to make my savings program a successful one.
Cracking Bad Habits with Automatic Deposits
I’ve take the hassle out of saving by making it automatic. I can save money before I ever get my hands on it which means I never miss having that cash. I’m not tempted to spend it and am already seeing my savings account growing just a little faster each month.
I also have made a commitment to never touch my savings account so that it will continue to grow. I’m saving for emergencies and circumstances that can arise at a moment’s notice and require that I pay immediately. If I have cash set aside for this type of event, and I know that sometime during my life I’ll experience an emergency or a crisis, I’ll be prepared to handle the event with confidence.
Hatching My Plan
Working toward financial freedom is one of the most rewarding and satisfying undertakings that I’ve experienced in my career so far. I have established two savings accounts, one for emergencies and one as a nest egg, so that I’m making wise investments in my future with each payday. Being a 20-something I tend to want to live for the moment and enjoy every facet of life that I can but I’ve determined that I have to include savings as part of my finances.
Image courtesy of: FreeDigitalPhotos.net Grant Cochrane