February 16, 2012
Money Update - Saving 101
Hey Friends. I hope you've been enjoying seeing us spend all of our money lately. What's that you say? Spend it on what? How about macbooks, video cameras, scuba lessons, sports games, trips to Banff, snowboarding, and more. We've already told you where we make our money, and our long term plans for our money, but how do we SAVE our money??
This part is simple, but not easy. Necessary, but not fun. Also, You've already seen my love of Starbucks here - so this is not just 'latte factor' tips. Because for me - lattes are a must have. Sorry BUDGET, you lose!
Tip #1: Know about the money you HAVE.
I think I've mentioned how much I love Mint.com. It's the best! I think money should be EASY and LESS COMPLICATED than it usually is, and Mint does that. It automatically syncs with your bank accounts, and all your smart-devices to keep you updated. Guys - It texts me when I spend too much on gas.
Tip #2: Learn About Money.
Ever notice that if you 'window-shop' enough you'll have a house full of stuff? Yep, what you soak in is often what you end up with. Visit money websites to help you keep up to date on the financial products available to you - and to get lots of great tips and advice. Here's some of my favorites, easy to read websites:
~ Get Rich Slowly
~ I will Teach You to be Rich : Amit is hilarious, and super smart. Follow him on twitter too.
~ LifeHacker:Money : Loads of tips+tricks to help you save money everyday.
Tip #3: Have Goals
Saving just for the point of saving is boooring and hard to stick to. Have some goals or rewards to help you move forward! We are saving to help us with our new adventure, and to have a stable retirement in the future. We are also working towards being debt-free. And trust - when we're there, a well deserved bottle of wine will be consumed.
Tip #4: Budget + Automate.
The future is here peeps - and that is automated banking. First, Budget your money. Start with the total amount you make, and fit in all of the expenses you have. That's the basics. Now look - is SAVING in there? No? Put it in. Make sure that you are budgeting for less than you make, and that you are including some frivolous spending. Starbucks is going to happen - don't let it screw up your entire budget. Here's more on that.
Next: Automate! Set up automatic transfers according to your budget. Your bank will auto-transfer that amount into your savings account or RSP on a regular interval (monthly/weekly). It's like you're saving money in your sleep! Here's more on that.
Tip #5: Review It - Business of Life Meetings.
Your financial life (single or married) is a business. Having 'Business of Life' meetings together keeps us on the same page, and helps us track our goals and spending together. A quick monthly review of our budget keeps us on the same page - and keeps communication open.
We treat it professionally - sit down at the table, no distractions at a set time. One hour is usually enough to get everything done. It's a HUGE lifesaver for both our marriage, and for our financial life. We'll let you know how this continues as we begin our travels and our financial needs change and adjust to our surroundings.
Go Save your millions!