Today is pay day. Every day the economy is being pummeled, so I’m not taking even one pay day for granted. The most important thing is still paying myself first.
And, this pay day is extra special because I have officially crossed the $23,500 mark on my Freedom Fund!
So now, I’m setting a s-t-r-e-c-h goal for myself before the end of 2008:
- New goal: $27,000
- Current balance: ~$23,520
- Amount needed: ~$3,470
It’ll be tight, but with aggressive savings from the 3 paychecks I have left and some ad income, I should be able to hit my stretch goal (baring any emergencies). This means an inexpensive Christmas, continuing my clothing hiatus, and forgoing a trip to Vegas that I had been seriously considering. $27,000 would fund 15 months of living expenses.
12/31 Update: I made it! $27,000 in my Freedom Fund (emergency cash).
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Ooh, congrats about your freedom fund!!
Congratulations! And good luck meeting your new goal. I’m sure you’ll be able to do it
You are so right. I totally cannot take my $ for granted with this economy. I like the idea of paying yourself first, it’s something I’m still working on. Congrats on your Freedom Fund!
Absolutely fantastic. Congratulations & I know you can accomplish the new goal!
Wow! Congratulations! To be in your shoes! I bet it feels super good to be meeting your goals!
That is awesome!! Congratulations and here’s to the next $3k goal!!
That’s a nice chunk of change there. Good luck on making your goal.
My monthly income is $900 and I pay $650 to rent a room in a house with nine people. Add in medical expenses and a student loan garnishment and 87 percent of my income is gone.
How can I pay myself first?
Poor Boomer, that sucks but you have to understand that different people have different expenses. To save 3700 dollars in a month and a half is just for people with next to no expenses and probably living at home. Not all of us can be that lucky.
Poor Boomer (and Carm)- I think any person on any budget can MAKE savings happen if they are motivated to do so. Always remember that we create the situation we live in (law of attraction). We may not be able to save $3000 a month like the author but we CAN create a savings plan if we make changes in our lives. Remember the saying : “in order for THINGS to change, I have to change.”
So what can we do to create a savings plan?
We can live elsewhere/ more affordably.
We can have savings taken off our paychecks before tax to help us save and reduce our taxes.
We can earn more income by taking on another part time job.
We can reduce our entertainment allowance (if we have one).
We can cut down vehicle expenses by biking, carpooling or bussing where we need to go.
We can visit a financial institution or financial planner, often for free, and create a plan that works with our income to create a savings plan.
The bottom line is we ARE able to make happen whatever it is we desire, when we are motivated and focused on doing so.
Congrats!! Question for you — if you were to buy real estate would you tap into your Freedom Fund or start a separate Real Eastate Fund?