Its FRIDAY, its the 2nd of the month which means, rent is due! HORRAY! Actually unhorray!
But lets talk about SAVINGS! Yes, savings!
I know, I know a few weeks ago I started unceremoniously Christmas shopping for my loves! But that’s because: I’ve got a savings plan already set up and I have no intentions on spending exhorbit amounts of money & time shopping when it gets closer to the holiday.
Today I want to focus not only on why you need a savings plan but also how you can benefit from it. Lets get started shall we?
1. Cushion Cash: If you’re like many Americans in the Rate Race, you are an “At Will” employee. Which means your employer can terminate your employment at anytime for any reason or for no reason at all (Within Law). That is some scary $#!+! If you’re living paycheck to paycheck with this type of employment it’s risky! (and I am lowkey judging your decision making skills but high key telling you this was me a year ago.) Especially if you find *scream* your next check is your last check!
I STRONGLY SUGGEST you save at least for 6 months expenses, ya’ know just-in-case the stars align against your favor and you find yourself in the funemployment line.
(Note at the time of publish the average duration of unemployment in America was 27.4 weeks that’s about 6 months My Source )
**action item** If you have not already, figured out how much it takes to live off (basic needs: rent, lights, gas, groceries, etc.) Check out my Financial Planning Workbook so you can #GetYourFinancialLife. Sign up for my newsletter here to get it in your inbox!
2. Develop Sense of Accomplishment: Saving your money requires you to practice self control. This for me is nearly impossible. In fact, it’s so difficult for me I have to put myself on “spending punishment” and go extended periods of time without shopping at all! I even have to avoid certain activities like “going to the mall to get my nails done” or out right just hanging out with girlfriends on the fly because we’ll surely end up at the mall shopping and spending money I aught to be saving. So instead of accepting the invitation to the mall. I have to call my girls like, “Hey boo hey! How about Netflix and chill at my crib? You bring the wine, I’ll make the popcorn and we’ll watch Liv make a fool of herself while fixing everybody else’s issues.” (This usually ends in near disastrous wine fueled heart-to-hearts but thats another issue for another day.)
Saving money requires you to have a certain amount of self control and maturity. Two things I’m not ashamed to say I need more of. After spending punishment & my summer income drought (read about that here) I swear when I looked at my savings account I was floored! How in the heck to did I get a COMMA in there? And I still haven’t bought any pairs of shoes. (ok maybe I went and bought a pair to celebrate) I’m still not sure how the comma got in there. But boy am I proud! THE IMMENSE SENSE OF ACCOMPLISHMENT is incentive enough!
3. Seed Money: Once you’ve reach your cushion cash number do you stop saving? Heck No! You throw on your celebratory shoes you shouldn’t have bought and have yourself a solo dance party! Then you see number 2. Self-control ladies! Self CON-TROL! I promise after just two months of saving, it will feel as natural as brushing your teeth. Your money routines will become habitual & even better, YOUR MONEY MAY START MAKING MONEY (interest) for its self!
Imagine a few years from now, having enough money to be able to walk off of that job that doesn’t feed your soul nor your heart’s purpose with enough money to start working for yourself and to survive for six months! (More on the benefits of business ownership to come.)
The point I’m trying to make is, your habit of saving money may become seed money for your business or even just retirement money. Then you too can have days where you don’t have to work for anyone but yourself; or even better you don’t have to work at all!
There you have it Damsels, 3 Phenomenal Reasons Why You Need To Start Saving For A Rainy Day today!
Up next, why you need more than one savings account.
If you’re anything like myself, you’re in a constant battle between being a financially sound adult and your desire to live the high life. I’ve scoured the internet for everything a Damsel needs to know to manage her coin wisely & developed a Financial Planning Workbook to help you organize your finances, keep track of your expenses, improve your financial situation and hopefully help organize and tackle your debt! Double click #GetYourFinancialLife to sign up + get a free copy of the Financial Planning Workbook in your inbox as well as a exclusive DamselSquad offers.
& as always remember,