I’ve offered a few different ideas on ways to save money. I’ll list three of them below:

1. Rounding every withdrawl to the nearest dollar in your checkbook. I have found this results in an average of 50 cents PER transaction. That means every debit, every check. That can add to substantial amounts of money at the end of each month to get out of debt!!

2. The old “coins in a jar”. When I was younger that was our spending money on vacation. Usually there was about $120-$130 in the coin jar at the end of a year. It was a pretty good way to do things!

3. Take 5% of what you earn off the top and move it to savings before you pay a single bill. This, of course, means you need to be living within your means first.

Today I want to talk about what you’re saving for! One issue people who are out of balance run in to is what to do with that money. Savers see it as a safety net, a source of security, and go in to spasms of fear and guilt at the idea of spending a penny of it.  Spenders get itchy fingers as they see that balance climb. They begin to focus on all the things they’ve been denying themselves.

I suggest having two savings accounts. Longterm and Shortterm. Then name them. If you’re saving for new windows on your house or a new car, decide which account that is and how much of the money you save each month goes to that goal. By the same token decide how much of your money is for “Emergency Fund” and how high you’ll let that go. There needs to be a limit [I'd say a year's expenses] so you don’t become compulsive about it [yes, I'm talking to all the spenders out there.]

Have a goal for all the money in your account. And if you have to use some, build it back up. We’re going to explore this topic a bit more in this week’s webinar. We’re doing final testing the beginning of this week and everyone signed up for The Balance Sheet who indicated “Webinars” will be notified when enrollment is open.

In the meantime, use what you’ve learned here and we’ll look forward to talking to you again soon!

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Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.

Balance, Not Deprivation is a section designed for any person. It is about recognizing the danger of being TOO much of a saver. Wow, did I just say that? Yes. As a former tightwad I recognize that aggressive saving isn’t about fiscal responsibility, it’s about fear. This section is about how to enjoy small indulgences for a reasonable price.

What keeps you motivated? For some people it is the satisfaction of a growing bank account. Other people need to be able to have a small splurge when they’ve kept on budget. For kids it’s good to have a small reward, even pop corn and a movie together. The point is to have something to celebrate your successes so you don’t get burned out in the pursuit.

Set a goal, find a motivation and go for it.

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Bio
Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.

Balance, Not Deprivation is a section designed for any person. It is about recognizing the danger of being TOO much of a saver. Wow, did I just say that? Yes. As a former tightwad I recognize that aggressive saving isn’t about fiscal responsibility, it’s about fear. This section is about how to enjoy small indulgences for a reasonable price.

It is easy to get in a crisis mentality when creditor are after you. It can also get scary when you see people at your company losing your job…will you be next?

Many people want to run their finances based on emotion. When I feel happy I’ll spend. I’ll buy gifts, get a $4 coffee and an new haircut. Also, some people want to spend when they feel depressed. They think a new outfit will make them feel better when everything is crashing in around them.

Neither hoarding, nor spending is the answer to emotions. The best possible thing is to look at balance. You need to exercise control over your spending during both the peaks and valleys. That means having a budget that you establish when you have a LEVEL head. Then you stick to that budget.

You learn to tell yourself no.

I think that is one of our biggest problems. We want to find a reason to say YES to things we really shouldn’t say yes to. Then we get in panic mode.

If you see your department downsizing then scale back on some of your extras and put the money in savings. Stop using credit cards and look for alternate sources of income. But DON’T stop spending all together because you cannot sustain it forever.

Think of money like eating. You can’t starve yourself, or overeat, forever or you will pay for it in your health. Likewise you can’t save everything [or spend more than you have] or it will affect your financial health. If you realize you’ve gained a few pounds then resist dessert, don’t fast for a week. Do the same with spending. Scale back on what you spend-but don’t stop all together because you’re simply setting yourself up for failure.

Receive notification when new tips are posted by subscribing here.

Bio

Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her. She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.