How can you deal with fear about the economy, jobs, debt, bills and the family budget and live your life with less worry today?
When you first begin to earn money, you don’t think about the future. In fact, you don’t think about the future being a part of your “now.” But it is. Most families don’t teach their children to save a percentage of each paycheck they EVER make, but this blog will tell you how critical it is.
Regular savings from each and every paycheck (by percentage) should not be optional. Regular savers are the real winners over time. Most people can create savings out of their regular income and reduction of spending. The quest is how to make it e-a-s-y.
How is your job? How are your bills? How is your credit? Do you have fear about the future?
F.D.R. said, “We have nothing to fear but fear itself.” What did he mean? Perhaps he meant that anyone can allow fear to overwhelm them. It is human nature to allow that to happen. Fear of failure. Fear of falling behind. Fear of economy. Fear of not being able to save enough for retirement. Fear of poverty for your family.
WHAT CAN YOU DO?
Start with a family meeting. Your family is strong when you set goals for them as a unit and depend on them for helpful ideas on how to save more money and reduce debt.
ENLIST THE FAMILY
Enlist your family to help you organize debt reduction and elimination. Tell them your goal is to reduce spending by reviewing all spending over the last three (3) months. Review all spending together as a family. Let everyone brainstorm about what can be cut from spending and sent to savings on a regular basis. You’ll be surprised how fast it will add up.
Your reduction in spending could come at the expense of entertainment or in minor expenses that you and your family have that you find you can live without. However, you should also consider calling everyone who sends a bill to your home. Ask for a reduction in payment. Specifically ask how you can reduce the amount you spend with them. Be prepared to listen to their suggestions. You may not like everything they say, but you should consider it if you are prepared to move the savings to actual regular savings.
ADOPT AN EASY SAVINGS PLAN & SET YOUR FAMILY FREE
If you don’t already have a regular savings plan, adopt our “1% Savings Plan.” If you have not seen the details of this, you can check out past blog entries or check it out at http://www.MiddleClassMoney.com.
SPENDING REDUCTION & WHAT TO DO WITH IT
It should be your goal to begin a process of reducing your overall spending by 15% to manufacture your own steady and regular savings. Again, you can really help your family begin a regular savings plan with our “1% Savings Plan.” It allows you to begin a savings process without killing your lifestyle. Rome was not built in a day. Any reduction in spending should be spent thickening your monthly “bill” to savings. If you don’t save what you “save,” you are saving NOTHING. Regular and steady savings should not be an option if you have a job today.
HOW DO COMPANIES DO IT?
Companies work to reduce debt by percentages. Companies also save and spend by percentages. You should, too. It is a black and white way to steady up on wealth-building goals.
HOW DO YOU GENERATE MORE $ FOR INVESTING
Talk with your family members. Brainstorm on how to generate money simply and only for purchasing assets. This underscores the strength in creating an investment line in your regular family finances. Purchase assets that reproduce themselves on a regular basis. This can be mutual funds, stocks, bonds or other investments. Your own children may come to the table with the best ideas. Once you start investing, include them in how those investments are doing. Make sure you have your completed emergency savings and are regularly contributing to your company 401k and a Roth IRA before you begin this process. By sharing with your family the importance of building regular investments, you will show them that over time you can create real value. This is a strong life-lesson, and it will help your family out in the future….perhaps even for generations.
WHAT SHOULD EMERGENCY SAVINGS BE IN 2010?
It isn’t 1979 anymore. Those old numbers just don’t hold up in today’s job market. How long will it take you to replace your income if you lose your job? Emergency savings today should be 15 to 18 months of your expenses in money market savings and certificates of deposit. If you don’t have this amount, you can do a variety of things to encourage this amount through steady savings.
Think about the future. The more you work with your children and show them that reducing debt and making steady deposits in your emergency savings, 401k and Roth IRA, the more serious they will take their own financial security in the future.
Simply by focusing on the basics, looking for ways to create regular savings and reduce debt on a regular basis you will create a richer life for your family faster than you think and you will prepare your children for the future. This could be an even better gift than a college education.
Get started. Don’t wait. Regular savings should not be optional. Regular investing should not be optional.
Debt (and especially credit card debt) is the #1 killer of wealth production in the middle class today.
By keeping your eye on the ball (and involving everyone in your family), you will save more and invest better over the long-term. You will improve your savings and your wealth.
Now get started!
HELPING YOUR KIDS GET AHEAD
If you think I was born saving money, you are wrong. My own family didn’t believe in saving. They don’t believe in having a 401k. They have had “emergencies” all their lives. These emergencies always get in the way of saving money regularly. I was not brought up to save and invest regularly and I have made every mistake you can think about when it comes to money. My parents thought they were shielding me from the realities of bills and worry. In fact, they were isolating me. I learned nothing until I had made many of the mi stakes they made. I have had to learn the absolute hard way how to get savings on track and make it a part of your life without killing your lifestyle. I have had to learn the hard way how companies mislead with marketing. It is my mission to share what I have learned about regularly saving with my own children and also share it with you. That’s why we have a lot of “free” (blogs like http://www.boostmywealth.wordpress.com and http://www.stickyasset.com/blog and groups on Facebook like “Coupons & Coupon Codes”)!
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!
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