Savings tips from a millennial mom on the right track to saving $3.5 million

‘Determine what your goal is’

Before you begin any financial journey, “the most important thing you need to do is figure out what your goal is,” she says. Jones doesn’t necessarily mean the superficial financial goal, like having $15,000 in your emergency savings, but the personal goal behind that financial number.

People think, “‘I want to get out of debt,'” she says. “And that’s, like, that’s cool. But why? Why is it important for you to get out of debt?” Is clearing your loans useful because it will save you money for that three-month vacation in Costa Rica, for example? To be able to buy your first house? Or be financially independent one day?

When you can connect to the deeper meaning of your financial goal, it will be much easier to both negotiate your life around it and stick to your long-term plan.

“It’s not about deprivation: it’s about compromise”

One important thing to remember when planning your budget: “I think it’s not about deprivation,” she says. “It’s a question of compromise.”

Take inventory of your daily, weekly and monthly expenses. Among them will be expenses that you cannot avoid, such as your rent or mortgage, bills, groceries, and any debt, and there will be more discretionary expenses, such as going to the movies or flying to The beaches. from Puerto Rico twice a year.

Video by Stephen Parkhurst

When it comes to your discretionary spending, consider what’s really important to you and see if you can cut the rest. If you love hiking every month, but don’t care as much about the weekly cocktail you drank, cut that down and put some aside to reach your savings goal.

Jones quotes Ramit Sethi in his philosophy on spending: “Spend lavishly on the things you love, then cut like crazy on the things you don’t care about.”

“There are YouTube videos, there are podcasts, there are blogs, there are books”

To be inspired. When it comes to finding financial tips to apply in your own life, “there are YouTube videos, there are podcasts, there are blogs, there are books,” she says, adding that ‘”there are so many financial experts who have these cool hacks” that could help you move towards your goal.

Try searching Google for videos, podcasts, or books on terms like saving, spending, and budgeting, and start learning tactics to effectively revamp your personal finances.

Video by Courtney Stith

Ultimately, seeing your goals come to fruition takes time and patience.

“I think people want to get rich quick,” she says, but you probably can’t get rich tomorrow unless you win the lottery “and the odds of that are low.” Instead, when it comes to a goal like saving enough to retire early, it’s really about playing the long game.

The Joneses began saving for early retirement in 2015, with the goal of retiring around 2027 or 2028. That goal was far from achieved, but over time as they stuck to their plan, they saw their money pile up.

“Eventually you reach a point where it just snowballs and everything gets worse,” she says, but it’s ultimately “the accumulation of a bunch of little changes that you’ve made” over several years. along the way.

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