This year will be a year to focus on things that I want to change about myself. I’ve set two goals for the year.
1) Save more money and encourage others to save as well.
2) Live a healthier lifestyle.
I’ll be documenting my progress on these two goals throughout the year. Starting with this post.
Lets start with the money.
I find myself always saying I’ll save more and start putting money away and sometimes I do (once I even had a substantial savings account) but then life happens or some other excuse and I would spend the money I had saved. It was essentially like losing all your save data on your favorite video game and having to start from scratch and I’m running out of lives. So I’m doing 4 things to save this year.
1) I’m investing a separate savings in the stock market.
I’ve set up an automatic deduction from my account for 25 dollars every paycheck, roughly 50-75 dollars a month, and have been purchasing small cap stocks and trading on my mobile phone during downtime. (waiting in line, doctors office, traffic light, etc.) These stocks are rarely above 5 dollars per stock and don’t make huge gains. However, the more you buy the more money you make when it increases 10 cents. Now that 10 cents might not be fantastic but over the course of a year you’re penny profits will add up plus your initial investment. With a $50.00 a month contribution you should have at least $600.00 in your investment account. (assuming your stocks don’t tank, I recommend using your downtime to research stocks and companies before purchasing, perhaps you wait to build up 100 dollars and research until that point you’ve still saved and learned something about the market)
2) I’m participating in what’s been dubbed “the 52 week challenge.”
The rules are simple; you must contribute $1.00 for whatever corresponding week of the year it is. The first week is $1.00, the second $2.00, the third $3.00 and so on until the 52nd weed which is $52.00 contribution. At the end its roughly $1,400.00 saved. To make it fun I’ve invited several friends to join me and to use the saved money to take a group vacation. I’m thinking the Caribbean!! You can keep the money in an account or like us we are using jar to visualize the savings on a daily basis.
3) In my regular savings account I’ve set up to deposit $25.00 per paycheck automatically.
4) I started a 401k where I am contributing 1% of my yearly income.
It is deducted from my paycheck pre-tax and is an excellent idea for anyone whose company offers a 401k program. If your company does not offer a retirement program I recommend a Roth I.R.A or something similar. It’s never too early to save for your future.
With these 4 practices throughout the year I’m guaranteed to save at a minimum $2,000.00.
I won’t count the stock investments, as it is technically variable although I anticipate having over $1000.00 balance in my investment account this time next year.
As I learn and adventure in the brand new world of investing I will share my progress, hopefully we can all learn from my journey.