Thrifty Thursday: Financial Reserve

In getting started with provident living, the best approach is to follow the prophet.  In the current guideline, the ALL IS SAFELY GATHERED IN pamphlet, it has been made clear and easy to see what we can and need to do. (see ALL IS SAFELY GATHERED IN:  home storage pamphlet, Ensign March 2009 p56-60)

Guideline 3 from pamphlet:  Set aside a little money, have a financial reserve.

1. “We encourage you wherever you may live in the world to prepare for adversity by looking to the condition of your finances.  We urge you to be modest in your expenditures…Save a little money regularly to gradually build a financial reserve.” (see pamphlet on finances)
2. Ideas on ways to Accomplish this:
1. FIRST & ALWAYS:  PAY TITHING!!!
2. Set aside what YOU can:  a few coins, dollars, whatever it may be every week.  As you do this, you will find it will grow and become a reserve that could help you in emergency.
3. When you pay for things, put the “change” into savings—even if you aren’t paying in cash.  If you use a check or debit card, when you go home, transfer the change left over to the next full dollar into your savings.  (ex:  you paid $30.41 for gas using your debit card, so once home the 59 cents “left” from $31 would go to savings)
4. Cut costs on unnecessary items/services and use the money saved for savings, to get out of debt or buy food storage.  (example:  does everyone need a cell phone in the family? Or cable TV? Or go out eat every day/week/month? Or the highest speed internet, haircut every 2 weeks (can it be done every 3-4 weeks instead or done at home?), magazine subscriptions, etc….)  Determine what are needs, and what are wants, cut some or all of the wants out.  Convenience foods also usually cost more than ones made from scratch:  make a goal to replace some convenience or restaurant meals with homemade ones (even if they have to made ahead of time to make them “convenient” to use).
5. Choose a specific dollar amount to come out of each paycheck or a specific percentage amount.
6. Gift money--put into savings all or a portion of any gift money given to you
7. Plan meals around sale items, shop and stock up when items are on sale.
8. Used items:  some items like clothes, cars, toys, etc. can be found used at a much better price than new. Be sure to compare prices and condition to new so you can determine which will be the better value (not always is the cheapest the better value).
9. Take care of your health.  Health care costs can be high.  Do what you can to limit/lessen those costs by taking care of your body and mind--wash your hands, eat healthy (most of the time anyway), exercise, get enough rest, take time to enjoy life (a hobby like reading or fishing) and don't forget to laugh--yes laughter does help!

From McGuffey's Eclectic Primer, revised edition, p53 (copyrights1881, 1896 and 1909):

"Work while you work, Play while you play; One thing each time, That is the way.

"All that you do, Do with your might; Things done by halves, Are not done right."

I share this poem, because one I really like it, but also I think it goes well with savings (as well as so much more):  do things with your might, one thing at a time.  Don't over burden yourself by trying to do everything at once.  It is often hard to do the best you can when doing so.  Choose one or a few things at a time you can work on and do them with all your might, once those are mastered, add a few more things to work on and continue the process until you become the person you want to be and are doing the things you ought to be.