Savvy Saturdays: Why Saving Now Is Important

It doesn’t take a lot of common sense to understand that the more money you save, the better off you’ll be financially. But saving can be hard. In fact, when you live some where like Los Angeles or New York where the cost of living is through the roof, it can seem damn near impossible.

When you’re living paycheck to paycheck, it can be hard to see beyond next week’s bills.

But know this: it’s not impossible to start saving now. Sometimes, all you need is a little mental motivation.

Think about it this way: if you’re living paycheck to paycheck right now, relying on the hope/idea that at some point you’ll snag that job or promotion that will elevate you to a spending status where you can afford to buy a new car or house, you might never get there. But if you start being savvy with your money now, you might not need to snag that pay bump to afford the things you dream of.

Why?

Because saving is a mindset.

Here’s another point to ponder: if you’re living paycheck to paycheck right now, and its not because rent takes up 75% of your income and the other 25% goes to groceries and debt, it means that you’re spending any leftover money you have every month on things that aren’t a necessity. Often, even in a 75/25 situation involving debt payments, there are still ways you can cut your costs. So if you haven’t already gotten out of the habit of spending every dime you own, what makes you think that having a fatter paycheck will remedy your excessive expenditures? Take a lesson from Kanye and realize that having millions (or billions!) doesn’t necessarily guarantee your financial security.

Instead, get into the saving mindset: always strive to live one step below your means.

Simply put, this means that if you live on an income where you can afford to go out twice a week, live with the mindset that you can only afford to go out once a week, pocketing the cash you save not spending an extra night out each week. If you want to save more money faster, you can get more drastic. Currently, I tell everyone I’m too poor to pay for valet parking, go out more than once every two weeks, and spend full price on a movie ticket more than once or twice a year. I’m not going to tell you how much I could afford, because honestly, I don’t even want to know. As long as I live in this mindset, I’m saving money. The second I “let” myself afford more, I don’t.

So if you’re not already in this line of thinking, start training your brain to think this way now. Why? Because you’d be amazed how much you can save up by saying no to a $5 coffee here, and a $20 movie there. You might discover that in a few years’ time, you have enough to pay for a new (or new to you) car, cash up front! Or, if you’re a big dreamer like me, a down payment on a house. 🙂

So get savvy, savers!

-tlc

 

Things That Every Twenty-Something Should Know

Okay, so a couple weeks ago I did a post on missing home and how I’ve come to realize that the only thing that is truly important in your life–and subsequently the only thing that will really make you happy–is the people and relationships that you surround yourself with.

That’s lesson number one.

But there are a few other things that I’ve picked up as time has gone on. I won’t list them all out here because that would be a long post, and I don’t think I could possibly think of all of them off the top of my head right now anyways. Besides, I have to have something to write about for future posts, don’t I?

So here are a few things that I think every 20-something should know:

  • Travel
    • Live outside of your comfort-zone/Travel box: Everyone has a travel box; those cities, states, and places that they’ve visited before, lived before, or have family and friends residing in. Move outside of that, even if it’s only for a year. You’re in your 20’s, you’re probably already poor, and hopefully you don’t have too many obligations to other people at this point in your life. Now is the time to go and explore the world, see a different place, and make new friends that grew up in a life different from your own.
    • I might not always love living so far away from my family, but I’ve learned so much and grown so much by moving away. I’ve discovered that I can rely on myself to get through almost every situation that I’ve come across. It’s really empowering, and in a lot of ways freeing. It’s shown me that the world really is full of possibilities, and that you can do the things you put your mind to. If you stay in your box forever, you have to learn to settle for the things that only your box can offer. Get out and explore. Learn something about somebody completely different from yourself.
  • Feed Yourself
    • Cooking, even if you aren’t great at it, is not only a life skill that everyone should be made to learn, it’s also the only way you’re going to be smart about saving money and about what you’re putting in your body. I don’t care how healthy a restaurant makes itself out to be, there is no telling where your food has been and what all is used to cook it. The only way to know this is to do it yourself–and frankly, it’s a whole lot cheaper, too.
    • It’s also an extremely satisfying and rewarding feeling to be self-sufficient and provide a meal for yourself. The less people you need to rely on to survive, the more empowered you will feel. Besides, coming from a family of farmers, I believe everyone should support small businesses and farms by shopping as much as possible at your local farmer’s market.
  • Clean Yourself
    • A clean home is a happy home. Take a little pride and ownership in the place where you live and take care of it! Not only will your everything last longer–we’re talking clothes, furniture, appliances, everything–but you’ll feel better and more relaxed because organizing and cleaning up after yourself won’t feel like a permanently unchecked box on your to-do list. BONUS: Things like vacuuming and dusting are actually great workouts that burn an impressive number of calories. Google it.
  • Keep Your Plans
    • Flaking is an easy rabbit’s hole to fall down. Check out this article that gives a pretty good observation on this plight that’s plaguing our generation of 20-somethings. This one, I’ll admit, I’m a bit hypocritical on because I’m definitely guilty of doing it. But when you make plans with someone and you don’t honor that, you only dig a shallow grave for that friendship/connection/relationship. If you don’t really want to hang out with someone, don’t make plans with them. If you make plans with someone but think there’s a chance something better might come up, 1) don’t think like that because that’s douche-y and 2) don’t commit to things on nights that you might want to do some other activity.
    • Personal relationships are so, so important. And I think as you get older, it becomes harder to meet new people and make those friendships that will truly make you happy. This is because as you get older, you get more set in your ways, more set in your routines, and old friendships take time to grow. So start young. Start now. Meet people, and be genuine. Put the stupid cell phone away and go out to dinner to talk. Close Facebook and plan a day/night out. Call instead of text. Be a little bit old school. Don’t let yourself become isolated by your technology.
  • Create
    • Nick Offerman calls it “Finding a Discipline,” but whatever you want to call it, find some way to spend your time that isn’t Netflix. Think of it as a physical way of investing in your future. If you love to craft, make things! (If you get good, you can sell your art on Etsy.) If you love music, make music! If you love to exercise, work out! If you love to help, volunteer! You get my drift. Then find a way to share your pass time passion with others. Who knows, it might wind up being a means to a living. Even if it’s not, you’ll be happier having something to take your mind off  the stress around you, and having a purpose to look forward to in your free time.

Okay, I have to stop there before this post goes on forever and ever. Gotta keep it simple, right? Anyways, that’s my current two-cents on what 20-somethings should know. I’d love to get other opinions on this, though. Seasoned vets of life might have a different perspective and I always love to learn knew things. Let me know in the comments if you have any thoughts on this.

Good luck in life.

-tlc