Savings and More Savings!

August 14, 2024

One of the first things I worked on with my coach from Summit Credit Union was to look for savings opportunities within my budget and think of feasible ideas to increase my income. The first actions, for me, were somehow easy. I will work on reducing unnecessary bills, consolidating or paying the highest interest debt and balancing different accounts to support my expenses.

My coach and I discussed different ideas to make more money or get supplementary income to support my variable expenses and leisure activities and to increase my savings. We had already put savings into the budget, but I needed more financial support for my extra expenses.

One of the most difficult things for me was to not use my credit cards and watch my impulsive spending. Paola, my coach, showed me where and how I was spending my money, which helped me see my money habits and put things into perspective.

These are some ideas that helped me to stay within budget and have extra money in my accounts to build a cushion and path to financial freedom:

Allocate a specific amount of money to every leisure activity. If I know my limit, I can control what I do, where I spend my money and how I want to save it.
Divide extra income into different accounts. When I get extra money from a consulting project or freelance job, I put a little into my fixed expenses account, some percentage into my savings account, a portion towards my credit cards and a little into my variable expenses account.
Leave credit cards at home. I use my credit cards only for emergencies and try to pay the balance monthly.

I have learned a lot with Project Money. It is an experience that gives me the confidence to manage my money and see my financial goals as achievable.