Saving

Saving ≠ Not-Giving

Garth Beyer

It’s rare for me to hear an employee say, “how much more can we give?”

It’s a lot more common to hear, “how much can we get away with saving (not giving)?”

Zig, Godin, Marx all talked of the race to the bottom in one way or the other. The bottom is sharp. It’s beyond efficient if you’re defining efficiency as giving as little as possible with an acceptable return. Is that the race we want to win?

I’ve always thought saving to be a funny concept. For some reason people view saving $5 on a pint of Ben & Jerry’s Iscream the same as saving $5 on a muffin for the Boys & Girls Club.

Likewise, in the work place, they see saving $50 on unnecessary banner ads the same as saving $50 on better packaging.

While the Iscream will make you instantly gratified and the banner ads may seem like you’re doing advertising that matters, it’s the donation to something positive that stays with you; it’s the over-delivery of your product that your customer will always remember.

Let’s not confuse saving with not-giving.

 

Stay Positive & If Anything, Give More

The Budget: A Priority Expense and Out-Of-The-Box Methods to Saving Money for it

The Budget: A Priority Expense and Out-Of-The-Box Methods to Saving Money for it

Garth Beyer

Hopefully you caught my post the other day about not being able to save money. In summary I inspired you to take the energy you use at focusing how to make your budget work and direct it at making more money. Now that you’re caught up, answer me this..

What  could happen today that would reap your budget meaningless? (Besides death, for you sarcastic followers)

Most Common Answers: Broken bone or hospitalization, House Fire, Broken down car

For the last 19 years of my life my mother has told me that “nothing lasts forever”. Yet this is true, can you pick one of the common answers that is the least likely to last a lifetime? Just by asking my friends, I found out the majority have yet to break a bone. Even older family members have told me they have never broken a bone. Next, I say that hospitalization happens maybe once every 25 years for a person and more likely to occur later in age. A house fire might happen once in your neighborhood of 20,000 people over the span of 10 years. I am sure you could agree with these estimates, its common sense that none of them occur too often.

Did I miss one? Oh right, the car

The number of occurrences of a broken down car is too many to count and far too many to give a number anywhere accurate to the truth.

So why is it that people still do not save money for it? To often people put the car as a separate category in their budget but they don’t prioritize it until “after the fact”. After something happens to it they end up going into their savings account, taking a loan, or begging parents and friends to help out. People rarely have money saved up specifically for their car, and if so, it is only enough for a car wash.

Why do we sacrifice our working budget and saved up funds for a car repair? Because we NEED our vehicles to get us places.

With the cold season upon us, I am certain you can agree with me that the most car breakdowns occur in the winter. Are you putting money aside to fund the unexpected need for a car repair?

Some quick out-of-the-box tips to lowering budgets in other categories so you prioritize your vehicle

  • Generic brands just started tasting better. A box of honey bunches of oats $4.45. Hyvee generic brand, $2.43
  • Instead of buying a new block building set for your kids, find something in the house to be creative with. For example
  • They call it junkfood, I call it junkfoold. Again, if you read my earlier post on saving money, you know that  I had to cut way back. I would not share this tip if it wasn’t effective enough to share.
  • Pull out that winter clothes bin and use it in the house. The average electricity bill in our apartment complex is 40-60 dollars. Typically 60 in the winter cold and 60 in the summer heat. I have spent as little as 20 dollars and as high as 46 dollars on our electricity bill. I am currently wearing her old black, white, and pink striped gloves to keep my hands warm instead of putting the heater on. *See above pic*
  • Cash for gold. I don’t mean just gold (Although my Dad and his lady got over 600 dollars from her grandma’s bracelet and a couple of earrings. They were creative with how to pay for their wedding) It’s time to let go of those items that you keep but never use. The sentimental value it may hold does not counter the terrible feeling of owing money and diving into your savings funds and having a budget you can’t keep up with.
  • Internet is not necessary at the home any longer (unless that is where your office is). I can bet that you can walk no more than 5 blocks from your house to get free wi-fi, as long as you don’t live in the country. I spent 16 dollars on a Droid application on my phone to get internet to my computer from my phone. That’s $16 dollars paid once compared to 40+ dollars paid each month for internet.
  • Stay following for a post on more out-of-the-box ways to save money.

Stay Positive and For those with a bike and not an automobile. Brownie points right to you. (Generic brand of course, but it’ll do)

Garth E. Beyer

Read This If You Feel That You Can’t Save Money

Garth Beyer

I have experience with a budget. I know various formats that can be used for a variety of people. I am 19 years old and have written at least 10 different budgets for myself alone and 20 with someone else. In addition I have reviewed others’ budgets and studied the art of budgeting intensely. When a person passes the point of giving themselves excuses to not write a budget, the next thing I hear is that they are not saving any money.

They write a budget and at the end it shows that they will be saving at least 200 dollars. Yet at the end of the month they are negative 20 dollars. Of course there were life changes during the month and as I always say about budgets, they are not constant, but they are a constant process. No budget will work two months in a row perfectly unless you do absolutely nothing with your life, make no income, and no expenses. Not the most sought after life.

After another attempt at adjusting the budget for the following month, the same results occur. They just can’t save any money.

As I corrected budgets, for a long time I would find ways to lower expenses and cut back. A little about my story, I moved to Madison WI with someone in Aug 2011. Being young and in love, you can guess that we did not have much money. We had saved enough to last seven months living at the lowest amount of expenses possible. We quickly got jobs. (Check my LinkedIn and you can know why, but don’t judge a book by its cover. I actually got the jobs I have because of what is NOT on my résumé) Now that we were set with employment, our goal was to keep saved what we had and save more from our paychecks. Hell no it’s not easy! Can you imagine spending 55 dollars a week on groceries for two people? We do it. We minimize every other expense as much as we can as well. Yet at the end of each month, we only save about 50-250 dollars a month.

Last month we sat down with the budget and tried to make more adjustments so we could save more. It just couldn’t be done unless we wanted to sacrifice all of our happiness. Then it hit me, kinda like a master craftsmen would slap his apprentice over his head once he figured out how to accomplish something he thought could not be done. It was almost as if the slap had a voice and said “You idiot, of course that’s the only way. Why are you spending all of your time on limiting yourself to save money!”

What I learned — If you can’t save money, EARN MORE

I and so many others are doing the right thing with creating a budget but were so focused on making the current monthly income we have work properly. If we could just take all that energy and focus on making more money… You can only imagine how much life would change and the money you would save.

We are a perfect example, we now save 300-450 a month and have only just began our approach at earning more since we couldn’t save more.

Stay Positive and Know Where Your Energy Is Going

Garth E. Beyer