Sometimes you create a financial plan and then realize there are so many different ways to reach your goals. I have to share them with you all because we are in this Financial Freedom game together. So, here are 3 more ways you can make you money work for you.
1. Cash Envelope Stuffing: Keep it organized (https://amzn.to/3BgDFtB, https://amzn.to/3OA6ft9) Keep it safe (https://amzn.to/418D7Rh, https://amzn.to/4fS0DXc)
This is a great method if you need a more hands-on approach. How it works is each bill you have (groceries, electric, car, etc.) you place the needed amount of cash in labeled envelopes. Once that cash is gone, you have to wait until the next pay period to refill the envelope. This especially helps with bills that can fluctuate like groceries and other spending budgets.
Any remaining cash at the end of the month is placed in a smaller envelope and used as a challenge to save all extra cash until a certain goal is met, say $275, then it is deposited into a Savings account at the bank.
This can be a tough way to budget and save because it is so easy to reach into other envelopes to switch money between envelopes. BUT if you have strong discipline and determination while also needing to physically see the savings (not in a app) this method can work for you. If you don’t trust yourself to stay out of the savings cash that’s okay, there are apps that can do the same thing, but some people flourish with this hands-on approach.
*disclaimer* Please note that you are only able to recover about $200 in cash from home/renters insurance if your place is robbed. Keep this in mind and double check with your insurance provider if you plan to keep large amounts of cash on hand for this section.
2. 401k Employer Contribution Match
Most employers have a 401k for each employee, and with that 401k comes a company match. A 401k match is when your employer will match up to a certain percentage that you contribute, it comes straight out of your check so you never see it.
If you were to contribute up to say 5% the company will match that 5% and total contribution grows to 10%. Anything you contribute over that 5% will not be matched, but still counts as your contribution.
If you aren’t sure whether your company does a 401k match, check your Employee Handbook, or ask your HR department – they’ll be able to assist you further. PLEASE take advantage of this opportunity. It’s free money you are leaving on the table. Also, don’t forget to INVEST that money that you contributed!!!! So many people make contributions but skip the second part that makes your money work for you.
3. Automatic Transfers
This is my favorite way to set-and-forget for saving. You’d be amazed at how much $100 buck a month adds up over time. I’ve got a couple of automatic transfers taking place. One is for my ROTH IRA Contribution, and the other is to my sinking fund (when I say sinking fund that means there is no saving goal, just whatever I can throw at it and let it build up). I like to keep my sinking fund and regular accounts separate so I do not see it everyday. This helps me to not focus on the numbers and I get to do a little happy dance seeing my progress when I check that account every once in a while.
You can also set up a second Direct Deposit for your paycheck so 10% automatically goes to a separate account and you don’t ever see it in your main one. Some people like doing this so they don’t feel like they are losing any spending money when budgeting.
I hope these 3 additional tips help you on your journey! I know they have helped me and I just love to pass on good info. Happy Saving!!
-Adele-
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