$tarting over in 2009
The new year is going to be here in three days and that means it's a great time to take stock of your finances. The sooner you do, the sooner you can make choices and create saving habits, says Rebecca Robins, a certified financial planner at David S. Reinders CFP Inc. in Stevenson Ranch. Rebecca shared these tips for starting small, diving right in, and maintaining good saving habits.
Start small: "You need to take baby steps in life," Robins said. Look at one spending category, like housing, food, or clothes.
Write down all the money you spent in this category in December. Do you need to pare it down? What are some items you can reduce or forego? Or is your spending level okay?
Another approach is to write down one financial goal, like paying down high-interest credit card debt, buying a new car, or creating an emergency fund with 3-6 months worth of expenses.
Why is this goal important to you? What it would mean to...
...achieve it? And what do you need to do to reach your goal? Write down your answers and keep them handy to strengthen your resolve at the mall.
Dive right in: Track everything you spend broken down by category and see where all your precious money is going. Download this spreadsheet to get you started.
If you don't already, start saving money each week, even if it is only $5. If you can save $20 each week, at the end of the year you will have $1,040! "We really need to make saving a habit in 2009," Robins says.
Maintain: It's okay to blow your budget every once and a while, Robins said. But to limit slip-ups find an accountability partner. Set a pre-determined amount you can spend in each category per month and when you go over, tell your partner.
For instance, if you already blew your clothing budget but spot a fabulous pair of boots on super sale, ask your partner what they think before you buy. Maybe the boots are too good to pass up, or maybe you need help saying no.
Talking about money can be stressful and create tension, so make it fun by creating a reward. If you balance your checkbook this week, reward yourself by going out for ice cream. If you and your partner spend an hour talking about money on the weekend, take yourself to the movies.
The bottom line: "There has to be a savings component because emergencies happen," Robbins said. Becoming wealthy is not as much about being successful as squirreling away a chunk of what you earn.
4 Comments
Leave a comment
About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
My Facebook Profile
For really money-saving shopping, drop by any Discovery Shop and benefit not only yourself but the American Cancer Society as well! I volunteer at the Shop in Burbank as "The Jewelry Lady" and it is so much fun opening a sack someone has donated and seeing what goodies are in it. If you enjoy going to estate sales, how about seeing one every week as you volunteer in one of the Shops? And remember, as a volunteer you get an additional discount!! There are Discovery Shops in Burbank, Toluca Lake, Northridge and Sherman Oaks. And remember, we are a high-end store - we do not have any junky stuff out on the floor. Many decorators and set designers utilize our large assortment of furniture and accesories. Please tell them JJ sent you!
Did you REALLY drive up here to Santa Clarita, or in reality, was she "forced" to come down to the valley to meet with you? LOL
My opinion is that we are heading into very uncertain times during the next six to nine months. We have done most of what we can reasonably accomplish by having ready cash available for emergencies that could last at least two years, if not more. Previously, we had a reserve for one year.
With so many talking heads spinning scenarios from the stock market is going to go up by thousands of points, to others who say world financial markets are going to collapse and crash further than what we have already seen and experienced. Rebecca's suggestions are a safe and sound bet for 2009. Probably better returns than the stock market...LOL
I've discussed with my family if we should dig out the old playbook that my orthodox relatives used back in Brooklyn, that being food preservation and storage. I know locally some of the Mormons are very big into this.
If the markets fall apart, and commodities can't make it into the food supply stream, we still need to eat. Might as well stock up now on items that will not spoil than risk having not being able to eat.
As far as financials, of course not everyone can quickly place the cash away. I'm of the opinion that if you just not only reduce expenses, but eliminate discretionary spending on controllable items/events, many that Julia has touched upon today in her year-end wrap-up of savings ideas, you would be surprised the amount of cash that will trickle into your account each month.
In reading the economic numbers, I am of the opinion that more dire news is yet to come in terms of higher unemployment, strangled business credit markets, downturn in corporate capital projects (who lack access to that strangled credit), huge increase in business failures and liquidations of many categories (not just retail), and the next big round of mortgage foreclosures, those with good credit on pick-a-pay (option) adjustsable mortgages. That alone will be a big "bomb" on the economy.
Over the weekend a friend said she was grateful for the "cheap" gas prices. I said to her, have you paid off your credit cards that you ran up earlier this year to pay for that "expensive" gas when the price hit it's peak at $4.60 per gallon? She said no, she makes minimum payments, and two of her credit cards have reduced the credit limits. So, in other words, yes she has "cheap" gas, just no discretionary funds to pay for it.
Stay focused and look under every corner, couch cover, kids pockets and backpacks..lol
to unturn every penny...and to Julia's column for the latest bargains and money saving ideas!
SO_CAL_RETAIL_SLUT
Actually, I picked up the phone and called her! Much more efficient than driving to her office. ~Julia
JJ, perhaps you can share an address or Web site for the Discovery Shop? ~Julia