Life Is Unpredictable- Be Prepared By Saving As Much Cash As Possible
Saving money is important…in fact it is necessary with the unpredictability that we face in our everyday lives.
When we have frightening statistics like 78% of full-time U.S. workers living paycheck to paycheck, we know this is an area that is worth discussing.
The problem with living paycheck to paycheck is that one small emergency can completely rock someone’s world in a negative way.
There is no safety, security or certainty when you have little to no money in the bank.
That can be an extremely stressful way to live and it’s astonishing that so many Americans are in this situation currently.
Unfortunately, life’s emergencies will indeed come your way and if you’re not prepared, it can turn into a big mess.
Now is the time to get a hold of your finances and take this seriously…your future depends on it.
In this post, I wanted to briefly go over a few tips, techniques and lifestyle practices I use to make sure I’m prepared when the water gets choppy.
Tips On Saving Money For Emergencies
These three simple tips below have helped me save extra money and smooth the ride when those unexpected expenses show up.
Downgrade Your Life:
Quite literally, many people who struggle with money look like they have it all together with the latest gadgets, new clothes, leased cars, spacious house/apartment etc…but in reality, in many cases the more “stuff” you have the more broke you are (this isn’t always the case, but the more you read up and research personal finance, the more you’ll see this is a common trend). Many of the true rich people or people who have a financial cushion, live extremely simple lives. They have no debt, drive used cars, live in modest houses, don’t purchase the latest and greatest technology and ultimately live well below their means. Try to adopt a minimalist lifestyle yourself, not only will it make you happier, but it will stuff more cash in your pockets as well.
Increase your income:
Another good way to save more money for emergencies is to increase your income. You can make this happen in a few different ways, whether that’s getting a raise at your current place of work, starting a side-hustle, picking up a second job on weekends (waiting tables/cutting grass), selling crap shoved away in your closet, garage or basement etc. These simple tweaks in your life can dramatically help you stash away extra cash and provide you with a bit more flexibility financially. Sacrifice now, so you can be more comfortable down the road.
Keep track of your progress:
This was a game-changer for me when I started keeping track of my progress (more specifically my net worth). I recommend tracking your savings growth in an excel spreadsheet or by using a free service online. There is something about watching your money grow (or debt decrease), that is incredibly motivating and keeps you pushing in the right direction. Don’t worry if you’re starting from absolutely nothing, if you take this serious, over the course of a few months to a few years, the results can be inspiring.
Preparing yourself for financial security takes major discipline but it is well worth the sacrifice.
Everyone will have different circumstances, but I think we can all agree that having extra money in the bank is extremely helpful.
The sooner you get on the path to financial awareness, independence and freedom, the better off you’ll be.
You owe it to yourself to create a more secure future for yourself as well as your family.
Money isn’t everything, but it is a tool that will make other areas of your life that much easier.
Please do treat your personal finance with the same intensity that you would at your full-time job or business.
It’s one of the most important skills you could master in your life.