Time and Money

We have all heard the old adage that “time is money”, well is it?  You know that you can spend time just like you can spend money or you can invest time just like you invest money, but the big question is can we SAVE time and SAVE money?

We tend to save things that are valuable and most things that are valuable to us have limits. You would most likely save and value the air you are breathing if it was perceived to be limited.  What about water? What if you only had 1 gallon of water to begin the month? Can you even put a price on that gallon of water? Would you make that water last the month? Would you spend time collecting water?  I could continue, but I think you might be starting to get the point.

Back to saving money. We have obviously placed a value on money and for the majority of us money is limited.  So why don’t we save? I would argue that if time is money then we don’t value time. It is obvious that our time has a limit and the kicker is that we don’t even know when that clock will end. We “spend” our time in places we don’t want to be, and “spend” our money on things we don’t need. What does your life look like if you placed the same value on your time as you did your money, or better yet, that gallon of water? Maybe you wouldn’t need that $500 dollar car payment or spacious house with large heating bills. Just maybe your time would be better saved for the people and things that you love rather than the debts and bills you owe……

For Sale

The first step in winning with money is creating an emergency fund.  That fund can be $250 on up but typically we suggest $1000 to be the number.  Imagine what the emergency fund can do for you?  Is a flat tire a big deal? Is the hot water tank going out the end of the world?  The function of the emergency fund is #1 slow down emergencies and #2 stops the use of credit cards.  If you are asking “Why an emergency fund?” it is because if you don’t have a plan, Visa or Mastercard will, and they would love to pick up your slack.

 

I know what you are asking “How?”  Easy, most of the clients we work with will have the fund in place within the first month, some may take a few more months but it is a requirement.  Yes we require our clients to SAVE! They are successful at saving because they want to change. They are tired of living paycheck to paycheck or worse living outside of their means.  So the quickest way to save is to......get this...... sell some stuff.  I know it is crazy but how important is that 4^th T.V. you have sitting in your basement or that exercise bike that collects dust.  Turning the stuff in your basement or attic into cash is a good thing.  That “stuff” is keeping you from turning your life around.  Completing step one is like recovering a fumble.  You are no longer on defense but you are now on offense and with your plan, aka budget, you will begin to march toward your goal.

Collection.....of Receipts

Continuing the 101 cost savings ideas leads us down the road of collections. Not collections as in credit card but collecting receipts. Most of, in fact all of our clients that come in our office do not have or are operating with a budget.  We have talked previously about the importance of a budget but today we blog about how to get one going.  The most common assignment we hand out after our first meeting is to begin to collect receipts. 

Collecting receipts is like counting calories, not very fun but the truth in this case, about your spending habits are made clear. In fact our clients often tell us that within the first couple of days they begin to spend less because they now realize what they are buying.  In the case of a budget you only have so much to spend. 

The receipt collecting not only serves a purpose for cutting spending but also budget creations. If you try to do a budget and are not aware of just how much you spend then you can guarantee your budget will not work. So to make the most successful budget we need to know that it cost $525 for groceries, not that you think or want it cost $250. A budget can only work if it is real and collecting receipts can make that happen.

Tip….

Put a shoebox next to where you drop your keys when you come home.  Mark the shoebox receipts and empty your pockets every evening.  Remember that it can take 2 to 3 months to create a working budget.