We Gone $ave Dat Money
Cash is King!!!
Personally, I think before you get into investing, paying down debt, or starting up a business you need to save. Saving takes consistency and discipline. If you’re a spender and want to make a change in your life, you have to recondition your thought process. Stop spending all of your money!!! We also have to get out of the idea that it’s okay to borrow all the time. Credit is not your money, it’s borrowed money, that is lent to you in return for a monthly fee on the current amount you owe. If the major credit card companies had it their way, they would want you to only make the minimum monthly payments so they can get you to pay interest for life. If you’re going to use credit cards make sure you’re paying off the balance monthly, otherwise pay for everything else in cash. Cash allows you freedom from falling into debt. Cash gives you a cushion for emergencies (which will definitely happen) in life. The beautiful thing about saving money is that it can lead you to financial freedom. The younger you start, the more it will add up over time. It doesn’t matter how much you earn either, it’s how you manage it. If you think “Oh I’m going to start saving more when I make 50k/75k/150k per year” you’re wrong, you’re just going to spend more. Having more money just increases people’s habits. If you have poor habits it will just lead to more poor decisions, if you follow good habits, having more money will only amplify them. A wise woman once said…
Always stay gracious, best revenge is your paper ~ Beyonce
There are plenty of different ways and places you can save money. I’m going to go through the process of how I got started and strategies that helped me. First, I’ve always held a checking account with Wells Fargo and it also has a savings account attached to it. I keep one month’s worth of expenses in my checking account at all times. Expenses like rent, bills, food, car note etc. Then, I keep at least $1000 in my attached savings account for immediate emergencies. This would be for any unexpected expenses that may come up that’s out of my monthly budget. My Wells Fargo checking and savings account earns a measly 0.01% interest per month. Pretty much nothing, so I try not to keep a high amount sitting in there because there are places where my money can work harder for me.
After those steps were done, I opened up a high-yield online savings account with Ally Bank and started funding my emergency fund. This fund will have several months worth of expenses. This account will also be used for my future down payment on a home. Once I reach 6 months worth of expenses, anything after that will be used for my down payment and closing costs. Ally Bank’s online savings account earns 1.0% APY interest and it’s compounded monthly. That is 0.99% more than any of my Wells Fargo accounts!!! The money is also insured by the FDIC (Federal Deposit Insurance Corporation) for up to $250,000. After you accrue more than $10 worth of interest within a year, the bank will send you a 1099 form to report these earnings. I like keeping my emergency fund here because it’s safe and I won’t feel the need to access it quickly. More importantly, in an event where I may need to, it only takes 2-3 days for transfers to go through. Some people like using money markets and IRA’s for emergency funds also. I would recommend doing some more research to see what’s best for you.
For every paycheck or bonus that’s deposited into my checking account, I transfer a certain percentage to my online savings. You can even set up automatic transfers monthly or bi-weekly. Some individuals set it up through their employer’s direct deposit form so they won’t have to see that money hit their checking account at all. Start small and set mini goals. Every six months I set savings goals and reward myself after they’re accomplished. It’s okay to treat and spoil yourself. I want to make the idea of saving money cool. I’m not saying that you should save all of your money, but just don’t spend it all. You can enjoy life while still being financially responsible. Here is an awesome video from an upcoming rapper named Lil Dicky “We Gone $ave Dat Money”. He wanted to see if he could throw the biggest and most expensive video without spending any money. He also raps about different ways he saves on the daily. Check it out below featuring Fetty Wap and Rich Homie Quan.
If you want to look up other online savings accounts here’s a great website Nerd Wallet