“A good man leaves an inheritance to his children’s children, but a sinner’s wealth is stored up for the righteous.” -Proverbs 13:22
Savings doesn’t naturally occur with your paychecks every two weeks. Saving is an intentional effort to mitigate personal risk and build for the future. Thus, craft and execute a thoughtful strategy. One of my most successful money-saving tactics is saving a few dollars a week on individual budget categories. For instance, set aside $50/week to buy lunch or dinner instead of cooking. Buy items like bread and cold cuts for a week to save an extra $20 or so. Adding $20-25 to your savings seems trivial, but it accumulates quickly. I saved an extra $4500 dollars in a year this way, making it easy to replace my car when it broke down. Remember, if you only save $3 a day, you save $1095 per year.
This brings me to the super important point of goal-setting. I had no long-term goal above, but my example shows that setting very short-term goals (week-to-week) adds up. You may have some desired far-reaching outcome (i.e. home ownership), which takes a large capital outlay. Start small with savings and let your wealth accumulate. Where else can you save money other than bringing lunch? Cable bills, credit card debts, and other nice-to-haves are opportunities for quick wins that also add up quickly.
Goal setting is especially important in marriage. Each party has their own view of financial success; each has separate wants and desires. It is very important for couples to create a full lists of financial goals, rank them and make one combined plan. Take every item seriously, whether it is important the other spouse or not. Successful institutions give its members a voice to ensure buy-in; marriage is no different. Come together as a team to build a plan that includes the equities of both parties. A couple with two income streams should quickly build up a desired emergency fund, then on prudent investments thereafter. Couples with a single income should focus on priority levels for each level of expense and design plans to attack each tier. The emergency should similarly be high on this list.
Inheritance is Key
Wealth building has impact beyond your immediate family. The importance of inheritance in building wealth cannot be overstated. Ultimately, this and financial stewardship are biblical principles. If we do not have a mind for saving and providing inheritance to our future generations, our priorities are out of line. Today is the opportunity to start saving and building with purpose and intention.
That’s all for now.