Thought for today:
After we stabilize our spending, and have been fully tracking and reviewing our numbers for a while, we will want to begin setting aside a small amount of money toward a prudent reserve fund, and toward debt repayment. The amount we put aside is not important – what matters is that we start a low-ball amount and stick with it. As we see the effects on our accounts each month, we will want to keep moving forward, contributing more over time.
A member shares:
“Even though my company matches up to the first $5,000 of its employees 401k contributions, I wasn’t taking advantage of this benefit. I was too afraid to do without the extra money each month.
“After my Pressure Meeting, where I listed all my debts and interest rates, I realized that the rate I was paying on my largest debt was 19%. But by making 401k contributions, I would be making 100% on whatever small amount I decided to start with!
“I asked myself – ‘Why was I willing to give money to my creditors and not to my future prosperity?’ The answer came back like a wave washing over me: ‘I am so afraid of my creditors that I am willing to appease them by foregoing my future!’
“From that moment, I started contributing $10 a paycheck to my retirement plan. Slowly I worked my way up until I was maxing out my company’s 401k match, and even beyond!
“I did the same thing with my creditors. Without sacrificing my credit payments, I gradually paid off my debts, one by one. I added a few dollars to the highest interest rate cards each month. When I retired a debt, instead of spending that extra money that I was paying that creditor, I moved it into the retirement account.
“Starting slow and gradually making changes each month really made it easier to get my finances in order over time. Slow growth was really painless, and I got a kick out of seeing my numbers improve each month.”
Snowballing contributions:
Like a snowball rolling down a mountainside, the beginning contribution doesn’t seem like much, but it builds up impressively over time.
Saving another dollar a week won’t hurt our current lifestyle, but it’s over 50 dollars more a year than we were saving. Paying five dollars more each month toward our highest interest debts won’t feel like much, but it will cut our interest as each month goes by.
Ask:
Have I learned the value of a humble beginning?
Meditation for today:
All achievement toward a goal starts small and builds over time.
Affirmation for today:
“I can begin planning for my heart’s desire with humble acts of self-love.”
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