My Top 5 List

I want to share with you my top 5 list of what we have done with our finances over the years that have taken us from being in debt to having a safety net for our finances.

1. We automatically save from each and every paycheck. When we receive a deposit, there is an automatic transfer of funds from our checking to our savings.  By doing this, we have built up an emergency savings account.  Something we all need.
2. Taking our large annual bills and dividing them by 12. Then saving that amount monthly.  That way when a large bill is due, we are able to pay it in full without any scrambling or stress.  For example, our car insurance is about $900. annually.  That means we save $75 monthly to be able to make the payment.  All we must do is to plan for the increase in premium to make the payment in full each year.
3. Earning interest on our bank accounts (yes, even our checking account) and not paying any fees to have the bank accounts.
4. Maxing out our retirement contributions to our IRA’s accounts each year to have a nest egg for retirement. In addition, we contribute to our 401K / 403B retirement accounts.  You can never have too much saved for retirement.
5. Contributing to a Health Savings Account (or a Flex Savings Account) to cover our medical costs that insurance does not cover.

I wrote this so that you can know what is possible.  Start today and make changes so that you can achieve your goals.  For us, this was not something that we did overnight, it took many years of making small changes to get to where we are now.