There’s a toxic mentality circling around that if you don’t have a lot of disposable income you can’t save. However, that is the exact reason WHY you should save. From my experience I have learned that the lack of a healthy savings account can lead you to feel trapped in your current situation. It doesn’t feel good to be stuck and in a society in which our Government can be purchased for a price: money equates freedom.

Freedom to choose a job and a fulfilling career path. Freedom to live in the apartment of your dreams or buy your first home. Freedom to travel the world. Freedom to craft the life YOU want to live and to be completely independent from a company, a parent, a significant other, any shackles that are tying you to your present reality and holding you back from your ideal future.

In order to take control of your present and future the very first thing you need to do is save 3 – 6 months of living expenses. This needs to be easily accessible money preferably in a high interest yielding savings account. A high interest rate, in my opinion,  is anything over 1.5%. I have seen banks offer as high as 1.85% so please do you research before opening an account!

The quickest way to jumpstart your savings is to thoroughly go through all of your expenses. Is there a recurring monthly bill you can do without? Netflix? Spotify? HBO? I would trim the fat of your budget and start allocating those funds to a savings account right away. (This doesn’t have to last forever, just until you have 3 months of expenses tucked away in an account!) When I personally reviewed my monthly expenses I found ~$200 per month I could be saving which quickly adds up to about $2,400 a year.

I was throwing a lot of money away on bougie gym memberships I did not take advantage of, ordering in from restaurants because I was too lazy to cook (lol), and my monthly entertainment budget was out of control. I was eating out WAY to much and  paying for every streaming service available – which, trust me, is a waste of money. You can’t possibly watch that much television!

Once you squeeze your budget down to the bare necessities: rent, groceries, transportation, phone bill, credit card payments, and of course a little play money for hanging out with friends (and treating yourself!) multiply the amount by 6 and that should be the amount you have in your savings account at ALL TIMES.

At first the number will seem very intimidating. Really intimidating. And maybe a little unattainable? But trust me. YOU GOT THIS! Motivate yourself by setting goals. Maybe you go out for a spa day once you hit the 1-month of living expenses saved. Maybe treat yourself to a bougie exercise class once you have 3-months save OR maybe it’s reactivating your Netflix. Once you have 6-months maybe you make that large purchase you’ve been waiting to pull the trigger on perhaps a new laptop? iPhone? Camera? Whatever works for you! 

And if you’re anything like me and constantly find yourself transferring money from your savings account to your checking every time you hit a milestone – that means it’s time to MOVE YOUR MONEY elsewhere. I find that if I keep my checking and savings accounts at separate banks I’m 300% less likely to recklessly transfer funds because I want a new pair of shoes and 100% more likely to make better financial decisions in the long run.

Last thing – if you do happen to find a savings account that offers a higher interest rate PLEASE close your other accounts and transfer your money asap. These banks ain’t loyal! So you ain’t gotta be either.

I’ll be back with more shmoney advice in the near future, but until then take care my loves xoxo

Posted by:High Black Girl

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