We are living in tough economic times right now.
Or are we?
The debate over how hard the United States has it financially is alive and well. The one thing that isn’t up for debate, however, is that we (yes, all of us) have the ability to change around our financial future.
There is one issue: millions of Americans are doing really, really bad things with money.
Over 75% of Americans live paycheck to paycheck and 62% have less than $1,000 in savings. Why? Well, the reason is multi-faceted but unfortunately people are too quick to look externally and too prideful to look internally.
Barring a few “exceptions to the rule” the reason that most people can’t get a jumpstart on their savings is because of bad spending habits. Millions of Americans do not live on a budget, they carry a monthly credit card balance, and they have thousands of dollars in student loans.
That’s a snapshot of the average American.
Just because you are in that position, though, doesn’t mean you do not have a way out. It takes work but you can start to move the needle if you think about your financial moves and start by learning about your finances.
Learning about your finances is the best way to take control. It enables you to craft a budget and draft a plan to stop living paycheck to paycheck.
Unfortunately there has been so much misinformation in the world about investing and “where to start”, people often feel frustrated. And rightfully so.
People feel like they can’t get ahead because they can’t hit goals that are too far out. It’s like building a house. If you get frustrated because you can’t put the roof on, but you haven’t started building the foundation, then you focus is pointed in the wrong direction.
I want you to focus on the foundation, which is Move #1 of the 9 Moves plan. Investigating your finances is where to start. You can’t save your money until you take control of it. Until you build a wall around your finances, you can’t protect the money you have. Understanding your income and expenses, taxes and insurance will be a good first step in the right direction.
As I noted above, many people get frustrated with the government or their employer or whatever the excuse may be, but until you look internally and face the man (or woman) in the mirror, the problem isn’t going to go away. I hear many people I talk with about money say “If I can just get to this point, then it will be all right”.
But that point is too far away! You have the opportunity right now to fix things and do better. That is why everyone can start off on Move #1 at anytime. It doesn’t take a waiting game to do Move #1 or Move #2. You can do them tonight.
So to answer the question of this post, you save by planning and starting a lean budget. How do you do that? Well, I’ve written a detailed article on each one.
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