Source: Dollar Bank via Wikimedia Commons
Today's topic: Saving Money.
Saving money has always been a priority of mine. Not a very high priority, mind you, but it's always been on the radar as one of those "I really should start..." (My top three ways to finish that sentence? "Saving money," "working out again" and "cleaning the apartment more frequently.") Anyway, I've always meant to start doing it, after I got my credit card debt paid down. Because that's more important, right?
Wrong. So, so wrong.
I know it seems counterintuitive. Why should I start saving money, when I'm wasting all this cash each month on finance charges for my maxed-out credit cards? Shouldn't I focus on getting them under control?
Well, yes and no. The short-answer reasoning behind this is that you always, always want a stockpile of cash saved up. In case your clutch goes out (ahem) or, worse, you have an unexpected medical emergency or even lose your job. Conventional wisdom says that you should have at least three months' salary saved up in a "rainy day" fund at all times. While that might be difficult to achieve, I think that it's absolutely necessary to have, and that should be your main financial focus until you get it.
Since I don't have enough extra money after all my bills are paid to do some serious saving, I've decided to pick up another job waitressing. Football season is coming up, and for those of you who aren't familiar with Columbus' football scene, well...we're kind of fanatics. The sports bar where I'm working is going to get a ton of business, and I'm confident if I save every penny of my paycheck and tips during football season, I can get a good savings stockpile started. It won't be the equivalent of three months' pay at my real job, but it will be a good base. From there, I can work on saving just a little bit more each month until I reach my goal.
While I'm saving the money from that job, I'll continue to make higher-than-minimum payments on my two major (and high-interest; we're talking 18% and 24%!) credit cards, in an attempt to wrangle them down. But for the next few months, my focus will be on save, save, save.
The nice thing about getting this part-time waitressing gig will be that I'll still be able to spend $20-$30 a week on frivolous things like clothes, booze and dining out. I truly believe that it's vital to work just a little bit of petty cash into every budget, just so you have a little freedom and are less tempted to blow your budget entirely.
What about you? Any tips or ideas for helping to save money?
