The Most Important Key to Building Your Savings
Savings is Like Football
Building your savings is like playing football. Stick with me, now. Even those who don’t watch the games on Sunday will get what I’m saying…
Football is a game of strategy. Everyone on the field has a specific job and players are laser-focused.
Take the quarterback, for instance. When the center snaps the ball to him, he doesn’t just randomly toss it in the air and hope something good happens. He knows exactly where the ball needs to go and how to get it there. Every split-second decision he makes intends to move the ball in a way that has the best odds of success. If something goes awry, he responds with the same intention.
Your savings needs to have a strategy too. And guess who’s the quarterback? That’s right. You! You set the intention and you call the plays. You stay focused so that if something unexpected happens (and it will), you can quickly make decisions that keep you on track.
The key to success is knowing what separates a strong savings from a weak one and then taking the right action to ensure your savings thrives.
Now that I’ve given you a pep talk, let’s break this down.
Recognizing Unproductive Savings
The conventional view of saving money tends to conjure up images of crumpled bills stuffed in a piggy bank, wads of cash stashed in a safe, or birthday checks from Grandma deposited into a savings account.
Every so often, you put a little away. Basically, though, it’s extra money that has no particular purpose other than to be, well, extra.
What’s wrong with that? Extra money is better than no money, right? Of course.
The problem lies in the lack of strategy. Remember the quarterback? He doesn’t just toss the ball without intention. When you toss money into an account (or sock drawer) without purpose, you diminish the odds of achieving important financial and life goals.
Understanding Productive Savings
A better way to view savings is money tagged for something specific, something that matters to you. After all, financial success isn’t just about sticking to a monthly budget. It’s also about living a meaningful life and fulfilling your dreams.
A thriving savings fund is one in which each dollar has a precise role to play in your financial well-being. There’s a clear game plan in place for these funds. You know exactly what the money is being saved for and you know where you are in the process of reaching your goals.
It’s up to you to assign dollars to roles. So grab the ball and prepare to move the dollars into play.
Register here to see how Budgety can get you started.
Customizing Your Categories
Now that you have a fresh perspective on what it means to build a strong savings, you’re ready for something fun. Yes, I just used the words savings and fun in the same sentence.
Football is intense, but ultimately, it’s meant to be fun. Your life can get pretty complicated too, but it should be balanced with joy.
So, take time to choose categories your money will be funding. Get clear about what matters most to you.
Choose meaningful goals that you’re inspired to achieve. What dreams do you want to fulfill? How much money would give you a sense of peace and security? Do you have an emergency fund yet? How about a discretionary pile for times of spontaneity?
Think in terms of retirement funds that you won’t be using for a long time. Also, a down payment on your first home, enough money to live off of for 3 months if you unexpectedly lose your job, and your car transmission needing replaced.
Imagine things like traveling to another continent to visit the village your grandparents were from, buying a new mountain bike, or taking scuba diving lessons.
This is about creating a unique life. So, customize your categories, calculate the costs of each, and then prioritize them so you know which ones to fund first.
Sign up here and begin customizing.
Confidently Managing Your Savings
Without clear lines, when and how much to spend gets blurred. It’s too easy to haphazardly pull money out for impulsive purchases that dwindle your savings. You never experience the satisfaction of a fully funded dream. And, it’s too easy to fall into the trap of limited thinking, which conditions you into believing your dreams are unattainable.
The quarterback’s odds of throwing a winning pass are decreased when he lacks focus.
But once you decide what you want to build your savings for, you’re incentivized to consistently fund your categories. It’s just human nature- when you know what you want, you take action.
And intentional action brings results, which motivate you to stick with the game plan. You feel in control, confident that your life’s dreams are in the process of happening.
Ready to get started building a thriving savings? Register here now!