November 2, 2009

Saving, A Plan of Attack

After some consultation with some of the leading internet/media icons of money management it seems one of our first steps in creating a financially stable future is to be prepared for the unexpected. That is, to have enough money saved to cover unexpected surprises (a car repair) or tragic events (meteor through the roof). Currently the majority of our back-up emergency fund comes in the form of change collected in mason jars. And don’t think I haven’t had moments where I thought to myself, “Well there is that $40 or so in change, if things really got desperate.”

Apparently this is not the way normal, financially responsible adults manage money. So we are establishing ways to gain back some digits in our savings account that pre-wedding, pre-house rehab, and pre-laid off husband had been relatively healthy.

Saving is not easy. It requires not spending. For those of us who are meticulously dividing out each paycheck between bills and hoping to have enough left over for a 6-pack of beer the concept of saving is quite foreign. But my husband and I understand the importance, so we have accepted the challenge and formulated a battle plan.

Our plan of attack is as follows.
• We will put $50 of each paycheck into savings as if it were a regular bill, with a due date and penalties if we don’t pay.
• We are not allowed to touch our savings account for anything short of disaster.
o Late night Taco Bell runs are not a disaster
o Concert tickets are not a disaster
o Root canals are a disaster
• We will each work one extra glorious shift a month which directly goes into savings.
o We will not complain about how much working extra sucks.
o The money cannot be used to purchase Taco Bell and/or beer on the way home from said shift.

The plan sounds great, huh? Updates to follow…

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