Picture this, you’re going through life minding your own business; BOOM! some type of life event, emergency or surprise jumps off.
Suddenly your debt (even "good debt") begins to transform into an ugly werewolf like Michael Jackson from Thriller (dating myself I'm sure)!
Yeah, that was me about 6 years ago.
There I was running, hiding and throwing anything I could get my hands on at this "debt monster".
Who wouldn’t do anything within their power to keep the debt monster at bay, right?
It’s easy to become so focused on paying off debt you forget to watch your back.
Life if full of unplanned events, surprised and emergencies.
Before you go throwing all your money and energy at debt make sure you're covering your a$$ets and saving.
I know, I know you don’t make enough money to save I get it. Sorry, (not sorry) saving is not an option, PERIOD.
How often does life happen? Go ahead i’ll wait…..
EVERY FREAKIN DAY, and sometimes 2x per day. Therefore you must cover your assets and begin to save for life events good, bad and ugly…. WHILE YOU'RE PAYING OFF DEBT!
Winning with credit and money is a two-side approach. I’m mentioning this NOW because I don't want you to go nuts when you start looking at your debt.
Yesterday you activated your Cashflow, created a budget, made some decisions about where you want to make changes and what amount you have available to address your credit.
NOW before you start throwing every dime of it at debt, If you are not saving you need allocate a portion of these funds to savings.
Online savings accounts are great for this purpose. They're not directly linked to your checking account and you can’t quickly transfer money over at the red light on the way to the BIG ONE DAY SALE. Just look straight ahead if I called you out (I see you).
Here are my top 5 ways to save:
1. Digit is totally my new best friend. Digit is a new and really cool app that takes the fear and guess work out of saving. It's completely automated and works without you having to think about it. It puts THE POWER TO SAVE right in your hand, literally.
You can make a transfer into your savings at anytime right from your phone.
Example, let say you planned to eat out and splurge on the lobster combo platter for $35 but had a change of heart and went with a less expensive item for $20.
You can transfer the $15 difference over right there and BOOM you’re one step closer to reaching one of your financial goals. You were prepared to spend it anyway, right?
Another Digit example which I love love uses the 52 week savings plan, click HERE for an example. An here's how it works:
Starting with $1, saving weekly for the 52 weeks of the year and increasing by $1 each week equals $1378 at the end of the year.
You can use transfer your weekly deposit amount over to your Digit account right from your phone. Once the money is out of site it will be out of your mind! Sit back and watch your savings GROW!
2. SmartyPig is a great online account that allows you to have multiply accounts for each individual goal no matter how big or small…….
3. MagnifyMoney.com let’s you compare and find the account with the best interest rates.
4. Automate, automate & automate (local bank or online) - Remove the extra step of trusting yourself (don’t do it) to make a transfer or deposit into savings. Most of us are never going to feel like it so get over yourself and get ‘er done.
5. Save Away - choose a local bank separate from where your checking account is located with limited branches aka limited access. This will give you more time to think before you go into your savings.
Click to tweet - Day 5 700 Credit Challenge- “I’m putting myself in the POWER SEAT of my financial journey and paying myself first!”
**Do nothing without PEACE! This is the motto, theme & truth I used in my decisions. All that to say I don't make recommendations easily. Either I've personally tried it out myself, I researched it to death or it's come through a long time trusted resource. Usually, it's all three. I may receive a small commission for any or all resources mentioned on this site. This allows me to give killer life changing content for the FREE and still keep the lights on. NO recommendation comes if I don't have PEACE.