Where do I Start?
Consider the following;
In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.1
This indicates the choice is our to be wise or to be foolish. Saving money is not a matter of maths or timing.
You will not save money when
- you get that next pay raise
- that car or credit card is paid off
- or when the kids have grown up and left home
You will only save money when it becomes an emotional priority
We all know we need to save, however most people don’t save like they know they need to save. Why? Because they have competing goals. The goal to save isn’t a high enough priority to delay spending money on that fancy restaurant, latest mobile phone or tablet upgrade, or that fancy china we don’t use. Therefore we purchase, buy, consume all our dollars away or, worse yet, go into debt to buy these things. The monthly payments for the debt then controls our next paycheck or worst future paychecks and make us say things like, “We just don’t make enough to save any money!”
No, no, no! We do make enough to save money; we just aren’t willing to quit spoiling ourselves with our little projects or pleasures to have enough left to save. It doesn’t matter what you make—you can save money. It just has to become a big enough priority to you.
If a doctor told you that your child was dying and could only be saved with a $10,000 operation that and could only be performed nine months from today, could you save $10,000? Yes! Of course you could! You would sell things, you would stop any spending that wasn’t required to survive, and you would take two extra jobs. For that short nine months, you would become a saving genius. You would give up virtually anything to accomplish that $10,000 goal. Saving would become a priority.
The secret to saving money is to make it a priority, and that is done only when you get some healthy anger or fear and then focus that emotion on your personal decisions. Harnessing that emotion will make you move yourself to the top of your creditor list. Then ask yourself Which bill is the most important? Who should I pay ﬁrst this month? The answer is you! This principle will be discussed later in more detail.
The advertisers and the marketing community are affecting our emotions on a every day basis and taking every dollar we have by making us see our wants as needs. It is time for this to stop! Emotions make great slaves, but they are lousy masters. No matter how educated or sophisticated we are, if we are not saving all we should be, we are being ruled by emotions, not harnessing our ﬁnancial genius to ensure we use our emotions as ﬁnancial planning slaves.
So whether you are saving for a deposit on a family home, a trip with the family, new school uniforms for the kids, or anything else, start saving now! It’s never too late!Once you have that you what to save you can use our savings calculator (link to saving calculator) to determine how long it will take.
How much deposit should you have? It depends on your own situation, this calculator has been designed to give you an idea how much you’ll have in the future (say 5 in 3 years time if you keep saving at the amount you are doing now)
If you are looking at ways to make day-to-day savings to help you reach your goal faster, use our Budget Tool to get started.
‘Budgeting’ has to be one of the least appealing words in our vocabulary, but if you’re looking to take control of your finances you need to budget. It’s that simple. We often like to describe it like a GPS.
Using a GPS may direct you to fine tuning your savings program so start today. The GPS can’t direct you where to go until it pinpoints where you are. Look
to use the following budget tool to obtain that snapshot and pinpoint where you are. Once we have this information Sure Harvest local mortgage brokers
can then provide you guidance to achieve your other financial goals.
This budget tool is comprehensive but if you would like more further, organise a time to see a Sure Harvest Mortgage Consultant. They are eager to go through a more detailed analysis of your budget in terms of proportional spending areas, spending habits and importantly spending timing.