Dealing with finances has always been stressful for me. I’ve always envied those who could face their money head on and make it work for them. Of all of the Torres5, my little sis is the one who is the most financially literate. One of my BFFs, Angie, is also good with dealing with money and, as I asked her for help in learning how to save and invest my money, I ended up laughing out loud with some of the things she came out with.
All I remember telling her was, “if someone would have broken it down like that to me back in the day, my life would have been totally different…seria millonaria!’
I’m kind of afraid to learn how to save. Especially as I have been living at the bare minimum as I try to establish my business. But as Angie told me, “my mom managed her money really well, y eso que trabajo en el fil!” We all know that working the fields is one of the hardest jobs that exist; field work is also one of the lowest-paid rarely with any benefits. And here we are, making likely more money than field work, and all up in debt.
I was laughing so hard at Angie’s common-sense way of saving and mad at myself because I couldn’t write it all down! (as I was driving), I will present some of Angie’s straight-up saving tips from time to time. You will see that learning how to save money requires commitment to the bigger picture, being there for yourself, not letting yourself down and, more important, living within your means. Aaaay!
It may help you to write out in detail what you want to save that money for: a new car? a house? Pay off outstanding bills? Whatever your goal, write it out. As my business is seasonal, I’m right in the busy season now, and my slooooooow season is during the latter part of the year, so I’ve decided that I’d like to start my 4th Quarter Fund, to help me keep afloat in October/November/December.
Now, you’ve got to figure out how much money you need to survive each month – rent, car, gas, phone, insurance…only the things you need to handle on a regular basis. Add it up.
After you get your check, pay yourself. Pay yourself, how? Pay yourself the amount that you designated as what you need to live on each month. Any extra amount, even if it’s $5 or $10, start saving it. You don’t really need it right now because you just paid your bills, right? This is where the committment comes in.
Angie’s take on the matter – ‘it’s so easy! Look at it this way: I can go to Nordstrom pero tambien alli esta la Ross!’ LOL In other words, economize. You can find cool clothes, housewares, and in my case purses at discounted prices at Ross or Walmart or even the ‘segunda’ (Goodwill). You don’t have to completely deprive yourself of nice things, but ask yourself, ‘do I really need to spend this much?’
Another way to check your spending: get all of the receipts together of everything you buy, and add up those receipts where you bought fregaderas/yonque/juzguerias/stupidass things that you didn’t really need then or now. I did that and found that my receipts showed the following in this order: gasoline, fast food, Starbucks, groceries. Not proud of so much fast food and Starbucks so I now see where I can cut back.
I asked Angie if it gets easier once you start, YES was her answer. The biggest benefit was the freedom from worry, why? 1) Your bills are paid and 2) slowly but surely, you are working toward the larger goal of financial freedom.
TRY it, do it for you, you can get your finances back in order, one coin at a time. We are too smart to be this stupid when it comes to money.