The money can add up sooner than you think.
The first step to building wealth is to have a starter emergency fund of $1,000. Ideally, this money will be kept in its own account, separate from your other money. Additionally, make sure the money can be accessed quickly. Afterall, it is for emergencies. Keep yourself motivated by working on this goal as fast as possible. Below, you'll find four solid tips to get you started.
Tighten Up That Budget:
If you don't have a budget yet, the first step is to make one. You'll see a true picture of your financial situation. Click here to learn about creating a budget. Once that's squared away, there are a few things you can do to decrease your spending:
Put subscriptions on hold temporarily. If you cancel five subscriptions, averaging $10 a month, that's an extra $50 in your pocket, or $100 after two months. You're already 10% of the way there with this one simple step.
Make a detailed grocery list. Before you shop, make a menu and research any sale items at your local store.
Give up takeout and restaurants completely for a while. If you eat out regularly, this will add up to some major cash savings quickly--maybe even a few hundred dollars.
Ask for discounts, and see if you can negotiate your bills. Often times wifi and phone companies will lower payments if you ask.
Don't pay more than you have to on debt payments, for now. Once your emergency fund is in place, you'll be ready to get aggressive with debt payments.
Sell something:
There's no better time to sell. Take a look at the classic selling arenas, like eBay or Amazon. If you aren't interested in using those platforms, the easiest step is Facebook Marketplace or Poshmark. Use well lit, clear photos of your items for sale, and take the time to write out a detailed description.
Create accountability:
Make a visual for yourself. Whether this means journaling about your goals, creating a vision board, or putting a savings thermometer on the fridge, make sure your dream is visible!
Tell someone about your goal and the end date. Your fear of disappointing them can put some motivation into your heart.
Increase your income:
Ask for a raise. The worst they can say is no. Alternatively, let your employer know you are interested in a raise and see what trainings are available that would make you eligible.
The Bottom Line:
All changes and discipline are uncomfortable. The good thing is that these changes can be temporary, while helping you gain long-term success. Don't be afraid to make small adjustments. Once you see the money adding up into your account, it will all be worth it.
Feel like you're ready to get started? Click here to sign up for an initial consultation with a coach at The Financial School. This remote session won't cost you, and it's a great step toward reaching your financial goals.