Diva Living Today

At some point, we learn that being financially responsible is the only way to go.  Who wants to come home to a dark house because they didn’t pay their electric bill?  Getting hounded by creditors or collection agencies is a nightmare – literally.  So we learn real quick, either first hand or by watching a buddy go through it.  Yup, note to self, this is what not to do.

There is so much more to fiscal responsibility than paying your basic bills.  Saving for a rainy day, retirement, and other events that will come whether we are ready for them or not, is a necessity.

We have to condition ourselves to spend way less than we make, so that we can save more and live a better life in the future.  Coming up with a good savings plan means, we have to do the “B” word, yes budget.  You must keep your expenses down.  Live beneath your means and come up with a savings plan. 

Basically, you’ll need at least 3 savings accounts:

1.        A long term savings account.  To handle the major things that will come in life, that house and beyond that.  A good way to really safe for the long term is through a credit union or a bank that is not easy for you to access.  Having the money direct deposited into your account without a withdrawal card means you stand a good chance of really building your savings.

2.        An emergency fund comes in handy to help defray the cost of that unexpected car repair or other forms of emergencies.  The one thing you can expect to happen in life, is some sought of an unexpected problem that will need to be fixed.  Fixed with what – money honey.

3.        Roth IRA.  If you don’t have a pension plan, a Roth IRA is a good option.  Again direct deposit and forget it.  At least as far as spending it goes.  If you can’t save for retirement when you are working, you certainly can’t save for it when you are not.

Once you have accumulated some funds, shop around for other financial vehicles that can help your money grow, CD, Money Market accounts.  Before you know it you may dabble in the stock market and making other investments in real-estate or whatever you choose.  You can’t take money with you, but you can’t live here without it.  So as Diva’s always do – find your balance.