If you’re new here, I like to save money. I like it a lot. My financial goals for 2013 include paying off the rest of my consumer debt, maxing out my IRA, and ending up with about $5K in savings, which, together, will be saving half my income.
Saving is nearly as addictive as spending. Seriously.
Especially if you have goals.
Set up some goals in Mint, and check in on them often. Mint’s fun because it’ll link an account to a goal, so the goal automatically updates. I love seeing the green progress bar fill up and up and up as I get closer to my goal-of-highest-priority. Pro tip: once you set up your goal, don’t edit it. That will recalculate the starting balance, so it’s not nearly as impressive. I shouldn’t have messed with my student loan one at all. But I adjusted my plan, which adjusted the starting balance, so now it says I’m on my way to paying off a $2234 loan, when in reality, it was a $15,393 (first two digits accurate, last three are random) loan that I have paid 97%, thank you very much!
The only automatic goal that’s really depressing is the retirement one. According to Mint’s math, I need to contribute more than my annual salary toward my retirement or enjoy retirement in 2078, when I’m 91 years old. So, I keep track of that goal but don’t think about it too much.
Part of why I don’t have a budget is because I have half my paycheck dedicated to these goals already. And by reaching my savings goals, I can spend my own money on the next thing, instead of borrowing from someone who will charge interest.
Some question my “save half” mentality, but that’s okay. We’re all a little different. And if I have to work until I’m 91, then I need to be saving my money!
This giveaway, below, for $100, is cool. It can be used for anything you want. If I were to win that? I would immediately throw it on my student loan, since it’s unexpected money, and the best thing to do with unexpected money is to keep it out of readily-accessible checking, where it will melt away. Unless it’s Amazon money, then all bets are off. Amazon money is my spending-on-fun-things money. My “extra” checking account, if you will.
Saving is alluring to me, because the more money I save while I am young and able to make money, the less likely my “age 91 retirement party” is to happen. Plus, if you look, do I really need 2.2 million dollars to retire?
I don’t think so. And that’s another reason I save. Because saving enables me to live at a lower income level. It tells me that “I can’t afford it” no matter what “it” is — something about easy-to-access money, just sitting in my checking account, has the effect of loosening the purse strings, changing my habits. Eating out more than in. All kinds of slippery slope things that will just lead me to the same place I was before — broke.
Save more, spend less. Win $100! Jeffrey is putting together another great giveaway — want to find out more? Click here.