A Family That Saves Together
A Family That Saves Together
By Briana Elmore
One of the most fundamental lessons that I have learned from my family is the value of saving money to build financial stability. The concept of holding on to my money in order to gain my own financial independence has been a lesson that I have had ingrained in me since I was a young child. The pride and joy of wanting McDonald’s and actually having my own “McDonald’s Money” to do so was enough to give me confidence and a sense of financial responsibility as a child.
Seeing the necessity to have a healthy savings account exemplified by my family has solidified the need to be as proactive as possible with money. Having a healthy financial saving lifestyle gave way for my family to endure unexpected financial expenses such as an emergency car or home repair. From an early age, I was able to see that money was a tool through which we maneuver within our lives. With that understanding of money, I was able to learn not only the value of a dollar but also the necessity to utilize my resources in a way that would allow me to responsibly maintain my lifestyle. This simple concept of financial literacy has assisted me in the pursuit of learning financial concepts that have been instrumental in my maturation into adulthood.
The following steps are fundamental in financial literacy as it pertains to savings:
Establish realistic financial goals.
An accurate assessment of your current finances with your financial aspirations in mind can set the tone for you to set a financial goal. It is important to be realistic and specific while setting your financial goals. For instance, a financial goal of yours could be to buy a brand new car in cash, but if you do not have a means of income or savings that can support that goal, it is not realistic to set that goal for yourself to accomplish in a short amount of time. It is important to take an accurate account of all of your resources when setting your financial goals to increase your chances of successfully accomplishing your financial goals.
Establish a start and ending date for your financial aspirations.
The time frame that you set for yourself in your financial savings plans can make or break your financial goals. If you properly allot your time to accomplish your realistic financial goals, you will be able to turn your goals into a reality. For example, say you want to save up enough money to pay off a trip that you are planning. If you give yourself a goal of purchasing the trip in a month vs a year from now would depend on your current income. However, if you give yourself a year to two years to save aggressively to accomplish this goal, you will more than likely be in the position to make the purchase that you want in the time frame that you desire.
Build a detailed plan to help you accomplish your goals.
You can increase your ability to accomplish many goals that you have with the proper plan of action. The best way to move forward in your planning is to create a budget and/or a financial plan. In this case, the more detailed and explicit you are in your planning the better your odds are for achievement.
Develop/ establish a savings positive mindset.
You have to adapt a mindset of sacrifice while establishing a savings and budgeting plan. This mindset gives you the understanding that you have to work towards your goals that you have set for the future. With the appropriate mindset, you will be focused on refraining from making a nonessential purchase in the present to accommodate the future financial goal. This thought process is essential for the goals that you have deemed important in the time frame that you have set for yourself.
Build a support system that will help you maintain accountability with your financial goals.
It is important to find your financial tribe. They will help you stay on point with your financial saving goals. These individuals can assist you in staying accountable with your savings plan to stay on track. They can also give you practical advice and support for you to reach your goals more aggressively.
Incorporate financial health into your daily life.
Download apps such as Mint that assist you in tracking spending. This method of tracking tools keeps an accurate record of your savings and spending to ensure that you stick to your financial goals. It also helps to make your financial goals tangible by having them in writing and readily accessible.
The journey to having a healthy savings lifestyle is ever-changing. There will be instances where you have a lot in your savings and times when you may be tapped out of extra funds. As Twenty Somethins with big goals, it is important for each of us to move towards financial stability and literacy to assert ourselves as we grow. Utilizing these practices with your savings can help you catapult yourself into your purpose with financial independence and organization.