by Texas Homesteader ~
We all try to pay the bills and also build up a little nest egg for the future. But sometimes building up that savings account is difficult. I’m sharing some simple tips to build your financial security almost effortlessly.
RancherMan & I learned to employ a few simple tips to build up our savings.
But that made our march to financial security almost effortless. Now we are completely debt free! Come see how we did it.
Find Recurring Savings Opportunities
The easiest way to build up your savings is to find a recurring way to add to your savings.
For instance if you pay off a large debt, reroute that payment you were making into a savings account instead. Do it every month, and do it automatically. That savings account will begin to build.
When RancherMan & I married I sold my house and we lived in his home. But I asked RancherMan;
“I’m already used to making a house payment of approximately $1,000 each month for my house before we were married. Why don’t we continue to make that payment, but put it into a CD every month instead?”
The Power Of Systematic Saving
If you put money into savings automatically, it builds without further action from you. Pretty soon you don’t even think about it and your savings builds effortlessly.
After our first year of investing in a $1,000 CD each month, we knew that were never more than 30 days away from available money from a CD maturity if for some reason we needed the cash. What a comfort!
This was brilliant! And because it was using money we were already used to earmarking previously for a mortgage payment, adding to savings didn’t even come out of our current budget.
Diversify Your Savings
We all know it’s not good to put all your eggs into one basket. Diversified savings helps protect from the ups and downs of only one type of investment.
We had the cash building up but we knew land was a good investment as well. And we both dreamed of a day when we’d have our own little place in the country.
We found this piece of paradise in Northeast Texas. I fell in love with that old 1880’s Barn & he loved the lay of the land and prevalent wild game. We decided to call it our own.
But we didn’t want to risk our financial security by blasting through the nest egg we’d so carefully built up over the years.
Maybe there’s a way to expedite paying for the note for our new property while still working our corporate jobs in the city to fund it.
So we started rerouting those same $1,000 payments to the land mortgage company instead to quickly pay for our new property.
We paid off the note in record time, yet it still didn’t come out of our built-up nest egg nor our current monthly household budget. Wow, that’s exhilarating. NOW WHAT?
Paying Cash Instead Of Spending Savings
Now that you have a savings account building, keep it for savings and try not to dip into it.
If you decide you want to buy something, pay cash instead. That way your savings will continue to build.
And more importantly, by paying cash you won’t be going into debt. That’s HUGE!
When we needed a tractor, storage buildings, fencing, ponds, etc., these things one by one were all taken care of with that same effortless step started years ago.
Our equipment and our pasture improvements were all paid using that method. And ponds were dug and fences were built using that method as well.
The beauty of it was that we weren’t going into debt. And it still wasn’t coming out of our monthly budget. Effortless!
Living Is Less Stressful When You’re Debt Free!
Fast forward a few more years. We built our home here on the Homestead & moved from the big city to live our dream of country living.
And a few years later when we decided we wanted to pull the plug on corporate employment and both of us stay here to run the homestead full time we were able to do so. With no debt looming over our heads, our monthly income requirement was already low.
Wow, what a tremendous difference being debt free makes in your ability to make decisions. Those decisions are not based on your debt load, but on your CASH!
Put Back Money For Unexpected Expenses
You’ll also need a plan for unexpected expenses such as car repairs or medical bills. Start a special savings account for those things too so you don’t have to touch the nest egg you’ve built for unforeseen circumstances.
Find places where you can free up a little money by skipping a night or two of eating out each month, eliminating ‘boredom shopping’ or saving money buying groceries.
That way when your washing machine goes out or the lawn mower dies, the money will already be in the bank to pay for its repair or buy a new one.
This means you won’t be forced into debt to pay for repairs due to unforeseen circumstances.
You Can Do This!
Are you longing for financial security? You can take the same steps we did. It’s a more effortless way to build that nest egg. I urge you to try it in a way that works for your household.
Maybe start by making a small monthly payment into a savings account each payday, just like any other bill.
Then when one of your existing debts is paid off, add that amount to your monthly savings deposit too. And the same with the next debt paid.
Soon the amount you’re sending to your savings account will be adding up to some real money!
If you start small and build on it you won’t feel the pinch at all.
And the freedom of financial security is priceless!
Other Frugal Tips
- When Financial Times Turn Tough Unexpectedly
- Build Financial Security With Less Effort
- Simplify Your Estate – Document These Numbers NOW!
- Thriving Financially Without A Corporate Paycheck
- Easy Ways To Earn Money Fast In An Emergency
- Is Food Past The Expiration Date Safe To Eat?
- Things I No Longer Buy At The Store To Save Money
- Top 10 Self Sufficiency Posts
- 12 Easy Tips To Save Money On Groceries
- Reducing Waste In The Kitchen
- Easiest Self-Sufficiency Steps To Take NOW
- Repurposing Empty Coffee Canisters
- Don’t Waste It – Free Vegetable Broth
- Make A Cute Dish Carrier From Old Jeans
…and many MORE!
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