Trade The Journey

Trade The Journey

Weekly Progress: There’s always an Expense waiting for you!

Greetings to all. I hope this post reaches you in good health while you are ascending toward a new height in life.

There’s never been a better time to save. Each dollar you save can earn you two.

There’s also never been a better time to spend. You could die at any moment. Life is not promised, and you should enjoy it. Planning for the next sixty years can put a damper on today’s excitement.

But if you are blessed with life and live long enough to see many seasons change, then you should plan. How can we do this when there’s always an expense waiting for you? There’s always something that’s about to happen, happening, or just happened. Last week, I found myself cycling through each of the scenarios just mentioned.

One call was about money due, and the next call was about money that could be borrowed. Does it ever end? No! Stuck in an underground parking lot wondering where I could get two hundred dollars for a new battery isn’t fun. Luckily, I recently began reinforcing the old habit of saving as soon as I am paid so I had enough to cover the needed battery purchase.

Imagine sixty years filled with worry and anxiety due to spending in the present without consideration towards the future. Unknowingly suffering from a lack of planning.

For a while, I wasn’t contributing anything towards my savings account. I was adding to investment accounts successfully only because of automatic deposits. But besides that, I wasn’t going out of my way to add to my savings account.

I lost my way. At first, I enthusiastically added to my savings account with each paycheck. Slowly, I convinced myself that the contribution wasn’t as urgent. Complacency seeped into my mindset and began to take over.

Knowing how complacency can slowly erode your motivation, I made an effort to add to my savings account. I didn’t add more than my most significant expense from the previous month. Why?

My last significant expense is apart of my measuring stick. Tracking your expenses can help you find the average cost of an emergency based on previous experiences. My goal is to cover all my expenses whether its an emergency or not from my checking account. In order to do this, I need to have a little left over in my checking account entering into each new period. Dipping into my savings account is a no-no. I know the game.

“I was able to cover the last emergency, thank God. I’ve done well. If I take out a couple of dollars, there will still be a lot left in my savings account.” And that’s how it starts.

You keep dipping, and finally, an emergency arises, and now there’s nothing left. Hence, “A fool and their money shall soon part.”

Because we know that an expense/emergency is a second away from occurring, we have to consistently prepare. One action I take before receiving my paycheck is to estimate the amount and then estimate my expenses. Using my calculator, I can get a good idea of what I’ll have left for the remaining two weeks.

I start with the expenses that I have to pay, and then imagine the likely expenses to occur. This can prove to be accurate. Another action I like to take is to pay off a large bill due sometime in the future that I can afford to. If I can’t afford to, then I’ll continue to save until its due.

This way the bill is not an unexpected drain on my cash flow in the future. You never know, the month the bill is due may be full of emergencies.

This week I’ll give myself a “B”. I’m slowly beginning to understand how to create an environment for myself that suits my spending personality.

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