How to Save $50,000 Hassle-Free!
Image sourced by Towfiqu barbhuiya @towfiqu999999
There’s an old expression about how to eat an elephant: “One bite at a time.”
If you’ve been following Budget and Grow Rich® for any period of time, you know that I got divorced in 2007.
And after the divorce had serious financial difficulties. The cost of maintaining two homes and the legal fees plus being under-employed put a massive dent into my finances big-time!
Once the dust settled, I started to clear the cobwebs and return to saving money and rebuilding my net worth.
One step at a time, or more realistically, one penny at a time and then one dollar at a time. . .
Turning back how to eat an elephant, for most of us it’s very difficult to save a large amount of money, let alone $50,000, in one shot.
Cash on the barrelhead.
The secret is to break down your savings goal into manageable pieces – an amount of money or amounts of money that you Can Reasonably save today, this week, this month and so on.
$1; $5; $10; $25; $50; $100; $1,000 or More.
Just start somewhere!
For decades, to save money I have used a simple accounting formula – B.A.S.E. – you can learn more about that moneysaving system and wealth-building system here.
B.A.S.E. is a financial tracking system, a moneysaving system and moneysaving framework that shows you where you stand against your goal and helps you track how much more money you need to save in order to achieve your financial goal – your moneysaving goal.
Grab these 11 ways to save $50,000 now:
Set a savings goal – an amount of money you want to save in the next week, month, quarter, 12 months, year or whenever.
Break down your savings goal and investment goal into an annual savings amount, daily, weekly, monthly, quarterly amount.
Make saving money a priority.
To make room – free up cash – for your newly established savings amount, analyze the income and spending categories and items inside your personal budget. Then make adjustments to your income – earn more money – and reduce your expenses and spending – to make room – free up cash – to fund your savings amount and still maintain a balanced budget.
If you merely skimmed over step #4, please take a moment and reread it carefully.
Because this tip is the essence of how to make your personal budget work; make your financial plan work; save money and build wealth. Full stop.
Continuously look for ways to reduce your costs and expenses and especially eliminate wasteful spending fand unnecessary spending.
Think Twice Before you make discretionary purchases, discretionary spending and discretionary expenses!
Do you really need this item now?
Do you really want this item now?
Could you put the money to better use somewhere else?
On Amazon, I got in the habit of adding things to my shopping cart and then winnowing down the number of items and clicking ‘Save for Later’.
Kick the can down the road. . .
When you get a raise, a windfall or extra money, analyze whether it’s better to set aside the money towards a target purchase (for example, a new car, house, retirement, etc.) or reduce your debt or invest the money.
Send your money to its intended destination – a savings account or money market account; retirement account (401k plan; 403b plan; Individual Retirement Account (IRA); investment portfolio; etc.).
ASAP!
Segregating or separating your money that you earmark for savings into a separate account or place helps many people reduce the likelihood they will spend the money on discretionary spending.
And increase the likelihood you will achieve your moneysaving goal and financial goal.
Monitor your progress against your savings goal and investment goal.
Modify your plan as you go, based on your results and changes in circumstance.
Examples include a change in income, job change, change in family situation / family status and your investment results.
◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊
Looking to save more money, hassle-free?
Click here!
◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊
For decades, I have used B.A.S.E. to organize my money, save money, build wealth and track my progress against my financial goals and objectives.
Here’s an example:
| Date | Category | Amount |
|---|---|---|
| January 1 | Financial Goal – Savings Goal: | $2,000 |
| January 5 | Deposit: | - $250 |
| January 10 | Withdrawal for Spending: | + $75 |
| January 31 | Remaining Amount to Save: | = $1,825 |
In this example:
$2,000 is your financial goal.
The $250 deposit or set aside brings you $250 closer to achieving your financial goal.
Since you withdrew or removed money from your financial reserve or savings account, the $250 is a negative amount or subtraction.
Because you have to save another $75 to achieve your financial goal.
This series of financial transactions means you have to save an additional $1,825 to achieve your financial goal of $2,000.
On the one hand, many people find financial charts and financial tables like this to be Stressful and Anxiety-Producing because the numbers crystallize the distance or gap between where you stand today and your financial goal.
On the other hand, more and more Budget and Grow Rich® aficionados tell us that they find financial charts and financial tables like this to be empowering and help them track where they stand today and how much more money they have to save to achieve your financial goal.
Me? I have an accounting background. And my Dad was a CPA.
But not everyone is as comfortable with numbers and personal finances.
Either way, everyone can learn and make progress.
After the dust settled from my divorce, these financial planning tools and financial tracking tools helped me track my personal finances and progress towards my financial goals.
Again, good systems drive the day and enable greater success, progress and achievement.
With each bit of progress with each step, I felt a sense of accomplishment because I was one step closer to achieving my financial goal.
Either way, putting emotions aside this chart gave me a solid picture – a specific dollar amount – of how much more money I needed to save in order to achieve my financial goal.
Again, with each bit of progress, with each step, I felt a sense of accomplishment because I was one step closer to achieving my financial goal. What’s more. . .
Over time, I DID In Fact Achieve My Financial Goal. And saved $50,000. Actually much more!
And you can too!
Realistically, saving money and accumulating money – $50,000 – takes more time and effort for some to achieve than other people.
But the secret formula for success is to select a daily, weekly, monthly amount of money or annual amount of money that you can handle – comfortably or reasonably set aside now – and get started.
And create a moneysaving system. Make saving money a routine and stick with it.
Believe me, accumulating the first $50,000 is the hardest.
The second and third $50,000 are easier!
Just get going right now.
Even a few dollars will make a difference.
The question really is:
“How important is it to You to achieve your financial goal?”
Let us know how the quest goes.
Arthur VanDam, CPA MBA
To Build More Wealth Right Now Clickhere.
Budget and Grow Rich® – ISSN: 2992-9296 – USA International Standard Serial Number (ISSN)
Disclaimer: OH and Please Remember, we are Not financial advisors, financial planners, attorneys or accountants and are Not providing any specific financial, tax, accounting or legal advice here. Be sure to conduct your own due diligence and consult your own professional advisors to get sound professional advice that’s specific to your financial and personal circumstances, risk tolerance, time horizon and investment goals and objectives among other key factors!
How to Succeed and Achieve Your Dreams!
Tired of the rat race?
To Succeed even bigger, greater and stronger, 10X your success – click here.
Budget and Grow Rich® is the original e-book guide to easy budgeting and wealth-building. Gain financial freedom and pour money into your pockets today and for years to come.
Finally, the proven roadmap to building wealth – how to make a personal budget that really works. Explained in plain English – easy to follow, practical steps. Since 1974, personal finance expert and author Arthur VanDam has used this system to organize his finances, manage his money and amass wealth. Now you can too. This straightforward guide tells all! Handy spending plan worksheet includes 14 categories that does it all. Practical tips and ways on how to create a financial plan and put your financial plan on auto pilot. Budgeting At Your Finger Tips will help You save more money, build more wealth, gain peace of mind and enjoy financial freedom.
Take your Business, Career & Life to a New Level with this Experiential, Immersive Live Event FREE!
How to Make Money in your Spare Time Writing Letters.