Now that the economy is slowly coming back to life, it’s time to clean out our financial closet. If you were one of the lucky ones like me that lost jobs, home and good credit rating; I feel your pain. I spent my share wallowing in self-pity. Now, it’s time to grab ourselves by the boot straps and rebuild. I am going to do a series of steps over the next few posts to give you tips on how to achieve financial greatness.
A savings plan; According to Dave Ramsey, the first baby steps to financial security is to have a savings account with at least $1000.00 for emergencies only. This is not a savings to blow at the casino or for shopping at the outlet malls; it is for fixing your car that broke down or the deductible to pay for your sons’ hospital bill after breaking his arm falling off of his skateboard.
You want to aim at $1000.00 in a 6 month period. If you are like me, and live paycheck to paycheck, it is hard to put money in the bank and not touch it. Let’s do some math; divide 1000 by six which gives you roughly $167.00 a month. This is where you have to decide where that $167 is coming from. If you can squeeze it out of your paycheck that is great! If not, then you need to work on coming up with extra income.
There are lots of blogs out there with tons of creative ways to make extra income without taking too much time and taking away from important things like spending quality time with family. One of my favorite blogsites is pennyhoarder.com. There are a lot of good tips, and it has inspired me to do a few as well.
Have this extra money go into your pay pal account, then link it to go directly into your savings account. Your savings account should be at a different bank than your regular bank. There are quite a few online banks that are reputable and offer higher interest rates or bonus money just for opening an account with them and making electronic direct deposits. I have chosen Ally Bank. They are offering a .99% interest rate, since I am not setting mine up for direct deposit. Regions Bank is offering $300 to open a checking account and Chase is offering $150 if you have a balance of $2500.00.
This is a good place to take a break. I hope you can put these ideas into action and if you have any comments or ideas you would like to share please comment or email me. I look forward to hearing from you!