Save $300 in 30 days
Well, its January 4th; time to start putting money back into my wallet. From the responses thus far it appears we will have many people along for the journey—great; it will be imperative for us to share what tactics are working and to be able to discuss the difficulties. Speaking of comments from fellow participants, check out the tips on “How to Stretch a Chicken” from the Frugal Fraulein—nice.
As a jumping off point (maybe not a good phrase for the Monday back for most of us) there is a bit of a surprise– David Bach author of Start Over, Finish Rich, Go Green Live Rich, and the new release Start Over, Finish Rich has provided us with his advice on starting over. The key point for me from his guest posting is finding where your money is. As I had stated before, I am not sure where I will be able to cut from my spending so discovering exactly how much in fact I am spending and where it is going seems like an excellent place to begin planning a budget.
Read through Mr. Bach’s guest posting below and let me know what you think.
–Michael
In today’s economy, is it possible to finish rich anymore?
Recessions like the one we have just experienced are not fun. They are gut-shattering, and they take a long time to recover from. But we do recover. Despite how you feel right now, YOU are in charge of your life. How you handle the next few years will determine how quickly you overcome the challenges life has thrown at you, and whether you will ultimately be stronger and smarter and richer for it. Although the economy has already come a long way back from where it was in the winter of 2008-09, both real estate values and stock prices are still way below the peaks they hit in 2006 and 2007. In other words, there are bargains—in some cases, phenomenal bargains—to be had. More important, recessions can be a great time to reset your financial life, your goals, and your values.
I want you to be able to take part in the economic recovery that comes after a recession. I believe that the post-recession period we’re in right now offers a once-in-a-lifetime opportunity to build wealth and start over. That’s why I’m willing to make this promise: If you are willing to take the 10 action steps I share in my new book, Start Over, Finish Rich—starting with the first step of regaining your belief in yourself and your future—you will be able to start over and you will finish rich.
Once you’re motivated to begin, the next step is to find your money.
Where is your money now, and where does it go every day?
Do you know?
Here’s the deal in a nutshell: If you don’t know where your money is—and where your money is going—you can’t start over financially. First you have to find your money. Then you have to make a plan.
Back in the winter of 2008-09, when the stock market was hitting bottom, a lot of people simply couldn’t bear to watch what was happening to their savings and retirement accounts. So they stopped looking. I guess that’s understandable, but when it comes to money, ignorance is definitely not bliss.
Getting your finances organized—understanding where your money is and where it is going—is the key to starting over. In order to make a financial plan that is based on reality (as opposed to wishful thinking), you need to do two things:
1. Determine what all your assets and obligations are.
2. Figure out where you spend your money, month by month, day by day.
You can follow my “Start Over” file folder system in Chapter 2 of my new book. It’s simple, effective, and will get your finances straight in the minimal possible time.
If you truly do this one step, your financial life will be on a better track than it may ever have been on before. You will have organized your finances at home and you will have a better understanding of where your money really goes. You’ll be ready to deal with the monster that is strangling Americans—credit card debt.
Thank you for reading my blog post. I hope you’ll join me on the journey to renewed wealth. And make a note to join me for a live online chat on Borders’ Facebook page on January 8th, 11:00 am – 1:00 pm EST.
Your friend,
David Bach
Related posts:
- I’m Going to Save $300 in 30 DaysWhat strategies and money-saving tactics can be implemented in order to reduce one’s monthly spending by $300 and not incur any drastic change in lifestyle (other than having an extra $300 on hand)? That’s my...
- Save $300 in 30 daysThank you to David Bach for his advice on starting over this New Year. He will be sharing periodic guest posts with us throughout the month and this Friday (01/08/10) he will be participating in...
David Bach’s comment hits the nail on the head. As a manager, I’ve always said, “You can’t manage it if you don’t measure it.” The same is true with your money. For my expenses, I use Quicken online which helps me get a great view of where I am spending my money because it pulls transactions from all of my accounts into one location. It also allows me to set a budget for things like groceries, entertainment and dining out. It’s interesting to see where your money goes every month. I feel much more in control of my finances this way.
I saw this post and decided to join in. I will transfer $75.00 from my checking account to my savings account every Monday. It is on my calendar waiting for a checkmark. I use a credit card for almost all of my purchases. I can use their tools to see where my money is going. For me, if I have cash in my wallet, it is gone. Thanks for posting your resolution, it helped me to finally do something.
When emptying your pockets at the end of the day…save the change and also any $1 bills also. You’ll be surprised at how fast they mount up…as you would probably spend the dollars on junk anyway. There’s a New Year’s habit to start.
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