Balance Beyond The Checkbook

Balance Beyond the Checkbook

By Brittany Pruess

Do you feel it? That nagging pressure of finding the financial stability? Do you wonder how you could possibly save for your future without sacrificing your happiness today? Where does living for today show up in the conversation of saving for retirement? Can a person really enjoy the here-and-now when they know they need to be saving for their future?

These are the questions many find themselves asking on a daily basis. Individuals are pulled back and forth between living for their present moment, splurging on their dream vacations or possessions, and feeling the urge to save every last dollar in the hope of having a secure future. This can leave them feeling directionless and uncertain about how to approach saving for their retirement. Although saving for retirement is a very individualized, and sometimes, complex process, here are a few proactive steps you may want to consider for finding the balance in the checkbook and beyond.

Maximize Money + Be Proactive

If you work for a company, one of the greatest investments you can make for your future is to participate in the 401k. Select the maximum company contribution option. For example, if your company will match a maximum of 4% of your paycheck every month, go with that option. You will contribute more financially in the present, but gain for the future. If you are self-employed, always make sure you are paying yourself first. To know how much you should be setting aside, seek a professional financial advisor.

Budget

You simply hear the word and think “limitations”. It is time to flip this script. Budgeting puts you in charge of your spending and where you want your money to go, rather than your money controlling you. Once a month, sit down and write out your budget.

A few items your budget should include:

1. Household Income

2. Monthly Savings Plan (Specific amounts for retirement, emergencies, large purchases, travel plans)

3. Recurring Monthly Expenses

4. Month-Specific Expenses

Creating a budget requires you to be aware of your priorities, where you want your money to go, and the income you are currently producing. If you have larger expenses coming up, look at opportunities to shift your money from the other categories. A few examples may include cooking at home versus dining out, walking/biking to work instead of driving, sharing a meal with your spouse rather than ordering two at a restaurant, or visiting local parks instead of shopping with friends. Rather than viewing these shifts as shortcomings, look at them as opportunities to savor simple moments and try new things.

If you find yourself wanting to incorporate a new activity into your lifestyle on a consistent basis, but your current budget does not allow for it, get creative! Perhaps find a part-time job you thoroughly enjoy, turn your hobby into a little extra income, or even consider being proactive and asking for a raise if one is to be granted.

Ditch the Plastic

The time we live in today almost requires us to purchase items with a credit card, especially on-line. Consider trying the envelope system Dave Ramsey teaches, and then, if necessary, implement this into your on-line and credit card spending — think of it as a “credit card/on-line spending envelope system”. For example, write down how much money you have for food. When you purchase a food item, note the amount you spent at the end of the day and subtract it from your total budget. When you hit the total budget for the month, you are maxed out for that category. And of course, pay off your card at the end of every month.

Stop viewing the big trips and large expenses as the only items that contribute to a life fulfilled. Rather, begin to cherish the simple moments and how special they are. For example, we are blessed to have the opportunity to cook wholesome meals, enjoy deep conversation, and experience the changing seasons. It is in these simple moments where life is truly lived.

Savor Simple

Living for today while saving for tomorrow can sound complicated, especially when things do not go as planned or your dream vacation may just suck your savings dry. However, when you begin with mindful planning for the future, budgeting, and cherishing the simple moments; you start to feel like your life, regardless of your present flow of money, will always be well lived and your future well taken care of.

BHB