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This May Scare You. It Scared Me

Saving For a Rainy Day

This May Scare You. It Scared Me

Before I write this, I need to tell you that there is a light at the end of the tunnel.

It started when someone told me Napoleon Hill died broke. You know, THE Napoleon Hill who wrote “Think and Grow Rich”. How depressing!

I ran a check and make sure they were right. Technically, he didn’t die broke. Big sigh of relief, right? But he did need to be bailed out by his friends. Apparently he spent wayyyyyy too much money and when he divorced a big chunk of his income went with it.

This scares the crap out of me because for a long time, he has been my big fat success story to cling to (YOU CAN HAVE IT ALL, HE DID!).

Anyway, to turn this bit of bad news into a positive, let’s look at what we can learn from the situation:

No matter how wonderful our relationship is, we should probably check what our significant others are entitled to if they ever leave. What’s the saying? Pre-warned is pre-armed or something like that?

And most important, I think:

We need to manage our money AND focus on increasing our income, instead of just choosing one or the other.

I read a piece of advice from a millionaire the other day that said not to focus on saving money, but to focus on making more because of all that LOA stuff. I call BULLSHIT!

Don’t get me wrong, I am a huge believer in LOA. I have a whole section devoted to it BUT the practical (and yes, cynical side) also values the importance of not wasting money. And just so you know, I realize the irony of calling bullshit when that guy is a millionaire and I’m not.

But my nanna’s advice of saving for a rainy day can’t be wrong. She is 75 and still travels overseas so saving for a rainy day works for her.

I’m going to call this the “Saving For a Rainy Day” Challenge

I want you to set up a locked bank account and arrange automatic payments on the day you get paid. So your money automatically gets transferred in there. I don’t care how much money you arrange to transfer. The experts say 10% but because I’m NOT an expert, just a real person trying to manage my money I’m going to say “whatever you want”.

I don’t care if it’s $2 or $20. The point is to set up a system that works and improve it over time. Start with $2 and next year increase it to $20 and maybe $200 the year after.

I don’t care. It’s about the habit not the money. Mine is $20.

The only thing I care about is that:

a) It’s an account you can’t access easily. This means no internet banking or phone access.

b) You set up the reoccurring payment to come out automatically

c) You pencil a date in your diary to increase it (monthly, quarterly or yearly). Decide what works for you.

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