This episode of Financially Naked: Stories from The Financial Gym, is all about saving money! It is an important aspect of personal finance and one people struggle with the most. Saving money is like a muscle. If you haven’t saved before, that money muscle is going to need some work. There are so many things to save for, emergencies, retirement, pets, travel, the list goes on; how do you even get started? Chandra and Hector, two of our Certified Financial Trainers talk through their personal savings journeys and how to start building and flexing that money saving muscle.
Hector and Chandra talk about their relationships with saving money and how they relate to their clients.
Chandra has an on-again-off-again relationship with savings. When she was young, her grandma told her to save half of her money. This was easy for her to do as a kid when she was getting ‘free’ money, but as she became a teen and young adult, saving didn’t come naturally. She would always save, but then use the money before allowing it to grow into anything significant.
Hector always heard the generic advice, ‘save your money,’ but there wasn’t specific guidance beyond that. Now that he has more control of his finances, saving money is not reactionary, but rather proactive and part of the plan.
There are different money personalities. Some people are better savers naturally, where others lean towards spending. It’s important to find the balance: save what you need to accomplish your goals, but also budget for what you enjoy.
It can feel discouraging when you need to use the money saved, but that’s what it is for. Having the emergency fund when it is needed is a win. If you saved the money before, you’ll be able to save it again. It’s all part of the journey.
Chandra reminds everyone that emergency funds are for emergencies only. Going to Tulum or Coachella is not an emergency.
Clients are hardest on themselves and Trainers are there to extend grace and remind them of all of the progress they’ve made.
Some goals can be intimidating for folks to think about saving that much money. If the end goal number feels intimidating, take it one step at a time.
Hector and Chandra share how reaching a savings goal makes them feel. Chandra feels a sense of accomplishment and Hector gains comfort having money saved.
Tips & Tricks
If you don’t have a lot of wiggle room in your budget, start small.
Open a High Yield Savings Account - it should be an institution separate from your regular checking account.
Set up automatic transfers from your paycheck. You can set these up through your payroll with some employers, or through your bank on payday. The important part is ‘set it and forget it’.
Make it fun! Think of it like a game or ‘savings challenge’. These games are a great way to stay motivated and enjoy the process of saving.
If you want to work with a Financial Trainer to help you reach your savings goals, learn more here.
