3 Debt Free Skills You should know!

Everyone knows how to dream. Dreaming big is often the normal. It’s something you are taught when you are little! However, maybe you find you don’t have the money to live the dream. How can you redefine your life and push your income to work for you rather than against you? Stay tuned!

Here are 3 easy tips that work for us and I am positive they will work for you too!

1. Make automatic savings a priority

This is the first thing I do when I start a new job. I set up direct deposit and find out if I can have multiple accounts attached. This helps because its out of sight out of mind. Start small. Don’t start with sending $100 to this fund and $200 to a sinking fund unless you are ready to send this large of an amount to your savings fund.

I am a person who was ready for a big amount to go to each savings fund. However, not everyone is me and most people are not like me with their finances, but are similar to how my husband was. He needed to start small with savings. He started with $50 to our baby fund and increased it to $75. He started with 6% to his retirement account to get the match from our employer. He then increased the retirement savings to 8% then 10% and now we are rocking at 13%! Only 2 more percents to get to our goal of 15% to retirement! Also, Dave Ramsey recommendation.

It is okay to start with $25 to your car fund, $25 to your house fund, $50 to your emergency fund, and 5% of your pay to your Roth IRA (your future matters!). Increase when you feel on top of the world. Like no one can get in the way. Even if you don’t feel on top of the world right now; you can start small. Obviously you are here for a reason and we are so glad you are! We hope you find an aha moment like I can do this! We want the best for you!

2. Keep Track of Your Expenses

This may seem easy, but often people overlook this part and find this step the part where they think budgeting is horrible.

Tracking your expenses is just like tracking your steps each day, but I would recommend tracking everyday unless you really need to slow your roll on spending money.

Schedule a day of the week you open up your bank account and look at your expenses. Be mindful of the money that is going out. Just as your mindful of eating sweets everyday or binge eating those donuts or Oreos. I am thinking about oreos right now– they sound so good!

Lets get back to money talk.

Looking back on the weeks expenses lets you know where you are doing good and where you can clean up a little bit. Its just like a good workout! What do you do good at and what do you need to work on?

Start your dream — get your income to work for you instead of you working for your income.

Here is our daily spending tracker to get you started!

3. Make a wish list of items that cost and save up for the purchase

This is a game changer!

Often people in the debt free community and the millionaires talk about saving up for the next big purchase. We do not sign up for the credit card at the store to save 15%. We do not get the deal when they have pay no APR interest rate for 6 months. These commercials right now with Covid-19 are killing me! No, do not finance a new car with no APR for 6 months and deferred payments! This is stupid. No do not do it! This is how you get into trouble with your finances!

We save up cash for the items we want. We discuss to make sure it is a good purchase. We place it on a list and then decide maybe I do not want it.

My little sister taught me this next one I am going to share with you all. She is a free spirit, a spender, and the one who taught me this trick to save and use my income to work for me. She loves to online shop like was the one who would get presents at the doorstep each month because she’s always buying the new clothes or make up.

Now here is what she does, she would leave the items she wanted in the shopping cart for awhile. To find if she really was in love with the items or if she could do without.

Most stores either send a coupon to remind us about the items in the cart or it was an item we don’t really want or need anymore after thinking about it.

A smart way to save you money!

Most of the time you say, I can do without this or I cannot believe I wanted that…that is not what I liked.

Your new dream… your old dream. Whatever the dream.

Be the beautiful scraps by figuring out how to make use of your current income to make big dreams come true by using these 3 ways: automatic savings, track expenses, and create a wish list.

I hope this is your starting point or your gas to generate your future plans. Whether you are new at trying to find your income to work for you or you just needed some juice to build your knowledge a new way.

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Whether it is tiny living with a baby, budgeting to learn to save more/paying off debt, living your best life, and enjoying what God created us for! Life is just beginning!

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