Second Step: Savings
Hello! I’m Salinas Bankruptcy lawyer Clark Miller with today’s Financial Focus Tip. I’m the only bankruptcy lawyer you’ll ever hear giving advice about how to avoid filing for bankruptcy.
Last week I recommended you stop using your credit cards and spend only money you have-by cash, check, or ATM card.
Studies have shown that folks will often spend as much as 100% more using plastic rather than cash. This is not surprising when we realize debt is the most aggressively marketed product on the planet.
Plus, credit cards prevent us from seeing where we really stand financially. The more clearly you can keep track of your finances the less likely you’ll end up at the bankruptcy lawyer’s.
Something I often hear from folks is frustration at their inability to save money. Saving is a primary way to establish control over one’s finances. Saving is power. Here are today’s tips to give you a handle on saving:
First: Go out tomorrow and set up an automatic savings plan with your payroll department. Have funds deducted from our paycheck go directly to a local credit union. (Remember, it is often easier to develop a personal relationship with a credit union than a bank. Plus, it’s more likely they’ll remember your name when you call.) It’s easier to save money you don’t see. Make the deduction just a little higher than the most you think you can afford (you can always change it). And watch it grow. If you find yourself unable to keep your hands off the savings, consider increasing your tax withholding. You won’t see your money until you get your tax refund next spring, but you’ll have it all. This may be a little painful at first, but within a short time you won’t even notice it.
Second: Try “saving” an amount equal to whatever is spent on nonessential indulgences. Put a matching amount in a cookie jar for money spent on beer, wine, cigarettes, and designer coffee. If you can’t afford the matching amount you can’t afford that vente soy Frappuchano.
Third: Buy an interesting glass vase from a thrift shop and set it near where you empty your pockets at night. Toss all your pocket change in the vase. In six months you could easily have $100 saved. A small thing, but easy.
Developing the power to save is a huge first step toward financial stability. It may take a few weeks to see real change, but try it as you would start a long journey-with just one step.
In weeks to come I’ll be bringing you more Financial Focus tips to help you avoid money problems. I’m hoping you don’t have to call me, but if you do the first consultation is always without charge. I’m Salinas Bankruptcy lawyer Clark Miller. Call me at 831-424-1764.
