The Secret of Incremental Savings

There are tons of places to start when you get serious about getting out of debt.  

If you are a big picture person, one of the best places to start is to imagine what life would be like if you had the money for the things you need and want before you purchase them.

Let’s be honest, your Starbucks latte habit isn’t what got you in trouble.  And cutting latte’s isn’t really going to get you out of your $20,000 credit card problem.

I don’t know about you, but it’s the constant unexpected expenses that frustrate me.

… New tires for the car

… Christmas presents in December

… Annual life insurance premium

Hmmm, notice how those expenses really aren’t unexpected…

• If you own a car, you know you’ll need to replace the tires.  But when…
• If you’re alive in December, you know you’re going to buy Christmas presents, it’s just a matter of how many…
• If you have dependants, it’s good to have insurance, but there are so many other pressing needs this month…

These really aren’t unexpected, but they’re expenses that most people can’t pay for with “this month’s” paycheck.  

According to the National Retail Federation, the average American spends $967.13 at Christmas time. If you can’t write a $1,000 check for presents at Christmas, where is it going to come from?  Credit cards, of course…

The key is putting $80.59 away for Christmas presents starting in January, and then in February and March too.  You get the point. Then the money will be there in December when you need it.

Your imagination turned to reality!

But, what if you can’t afford to put $80 away in January?  What if there just isn’t any money left over at the end of the month?

This is where the rubber hits the road and where people give up in budgeting.  If there’s no money left over for Christmas presents in January, and you know you’re going to buy presents in December, what’s the point in budgeting at all!

Stay tuned for the answer…