This morning, I checked to see if my Macy’s charges had hit my Visa and the had. I then went into my ING acct and transferred the money into my brick-and-motar credit union to pay my Visa bill. Won and done.
Also, I set up all my money transfers into my ING account for the month of July. Each month, I transfer approximately 25% of my salary into my ING savings account and this amount does not include the money that I put into my 401k Plan.
Trust me, this was not something that was easy to do but I built up to that 25% by paying off debt. Currently, the only real “debt” I have is my monthly rent and utilities payments.
The Coach bag that I bought over the weekend was a planned purchased. I know that I love Coach bags so what I did was last year, I added a sub-category in my ING account for a “Hand Bag Fund” and each pay period I would add money to this account.
I also have an Emergency Fund at my brick and motar credit union that will cover about 3 months worth of living expenses.
Currently, I can pay ALL my bills (rent, utilities, food, gas for the car) with just ONE paycheck.
Again, this is no easy task. However, I had to get rid all of my credit card debt to accomplish this task. Each time that I would get a raise or a COLA (cost of living allowance), I funnel that money into savings.
Although, I live a frugally…I still have fun! I go out with friends, I get my pedicures done at salon, I buy CDs, and I live life. Being frugal isn’t about depriving yourself but it’s about being aware of where your money is going.
When you get a windfall of money make a conscious decision to put some of the money into savings…even if you do have debt. It’s easier to get out of debt when you have a little cushion in savings…even if it’s just $500. Most little emergencies are under $500.
My best money saving tip is to plan purchases.