Why Opening Yourself Up is Key to Saving Money

Unless you win the lottery tomorrow, the odds are that you’re not as wealthy — or have access to as much money — as you would ideally like.

This is not a not a new issue, of course, and there’s been plenty written about how to improve your personal finances, but this issue continues to grow in importance. Millennials coming out college are often faced with a dilemma: take a lower paying entry gig that may not be in a related field, or stay on the job hunt.

You might even feel worse if you start comparing your earnings versus certain peer groups, or worse yet, actually start taking a look at just how (un)affordable your locale actually is. There are a whole host of reasons why you might live and work in a certain area, but as a CPA I always stress to clients and colleagues to examine if what they are earning lines up with where they want to live.

A relatively common approach to saving, or trying to save, is to set up a magic number — or another similar benchmark, tool, or range — that will provide you the lifestyle or retirement you are seeking. But something that I’ve seen far too many teams is that setting a goal and actually putting together a plan to get there are two different things.

Getting your money right is important, whether you are looking to improve your personal finances or use these improved finances to start a business. Putting this desire into action, actually getting your money right, is not rocket science, but takes persistence and some effort.

Let’s take a look at five tips to make this happen:

1. Write it down.

Study after study illustrates that you are more likely to achieve a particular goal when you have written it down. Whether it is achieving a better time on the treadmill, or saving a little more each month, writing it down will help cement it in your mind, and increase the likelihood that it will happen.

2. Automate savings.

I know, and you know, that technology is increasingly omnipresent in our lives. So why not put it to work for you? On top of setting up a 401k or equivalent savings plan, which I always recommend, here’s one tactic that might help: Contact your financial institution to set up a separate account specifically for savings, and allocate a specific percentage or dollar amount to go there with every paycheck.

3. Celebrate the wins.

Like anything else, getting your money right and improving your finances is a marathon and not a sprint. During the inevitable ups and downs, it is important to have something to look forward to — celebrating the weekly and monthly victories and successes will help keep you motivated along the way.

4. Get a buddy.

Building your network is something that I’m sure you’ve heard before, but probably not in regards to your finances. Having someone who is on the same journey as you, one that is focused on getting your money right, will help keep you motivated, and keep you on track when you might be wavering.

5. Be informed.

In the current environment, which is economically dynamic and uncertain to say the least, you have to be informed in order to make the best decisions for you and your finances. Making a habit of reviewing a variety of finance news, corporate or personal, will put you in a good position to improve your finances moving forward.

Finances, and especially improving your finances, is often thought of as a difficult and complicated topic, but it does not have to be something that is out of reach. Putting together a plan, following through on this plan, and celebrating the victories along the way can put you on the ramp to financial improvement. Getting your money right helps form the foundation for personal and business ambitions, so why not get started today?