SOWINNG FINANCIAL SEEDS

 

Sowinng Financial Seeds

I would like to dig a little deeper into my last blog SETTING UP THOSE SPECIAL SAVINGS ACCOUNTS. There was a flood of questions about setting up multiple saving accounts.

In gardening a seed represents growth, development, and strength. If you don’t tend to that seed and give it attention which it needs, the seed won’t grow. It doesn’t matter how small the seed is, only that you tend to it, water it and encourage it to grow.

When I was setting up my multiple savings accounts, I was planting many tiny seeds and I knew that I needed to invest in them in order to see them grow.

In this blog I will address 2 of the top questions from my previous blog.

  1. Why would I only save between $3.75 & $11.75?
  2. What can that small amount of saving do for me?

In order for me to answer those questions, I have to first give you a background on those five savings accounts.

When I opened those accounts in 1970, we had very little money to spare and our income in those days was not bountiful by any stretch of the imagination. Cost of living was also significantly less expensive than it is now.

After paying our bills, all we had left to save was $18.75 bi-weekly. I had to divide that into the five categories, which I convinced my husband was perfect for our future financial needs. Now my husband was not in favour of five accounts, he too thought that only saving $18.75 was meager and useless. He had no idea how to tame me, so he shrugged his shoulders and left me to my own financial devise.

And so I tended to my financial garden.

Here’s how the funds were divided:

  1. Buying a home   = $3.75
  2. Vacation               = $3.75
  3. Emergency           = $3.75
  4. Starting a family = $3.75
  5. Buying a Car       = $3.75

Total                                         $18.75

The next step was making sure that each raise we received was placed into those accounts. Seven years & several raises and job changes later, we were eventually able to save $82.00 bi-weekly.

At that time, our home buying account had $7,000.00 in it. We purchased our home with $5,000.00 down, paid our legal fees and shopped for used appliances on Queen Street with the rest. We bought a stove with a solid white door but no glass, a fridge, and a washing machine but no dryer. We hung our clothes out to dry in the basement. We bought nails and twine at Honest Ed’s, and used a brick as our hammer to set up our dryer line.

Honest Ed’s was our shop of choice – we were there every two weeks. We also frequently shopped at Knob Hill Farms, Bargain Harold’s and Bi-Way because back then they had the best deals. We kept saving and being cautious with our money.

All that I have financially today comes from that $3.75. Without it I could not be here in my present financial situation.

My small bi-weekly savings didn’t seem like much, but I was sowinng my financial seeds. My small savings were lettuce seeds.

As an avid gardener I can tell you lettuce seeds are tiny, but from that miniscule seed grows this huge head of lettuce.

I’m reaping what I sowed and I am helping thousands of people start their successful financial journey.

We’re all inherently gardeners in some form or another, but ask yourself, are you sowing your financial seeds?

Give it a try: make note of where you are today, date the page in your notebook and write the exact amount of savings you have today. The next step is setting up automatic transfers into a savings account. Calculate whatever amount you’re able to put away bi-weekly for one year. At the end of the year, compare your savings to what you had at the start. I can guarantee a big a-ha moment and a huge smile on your face.

To answer your question “what can a small amount of saving do for me? It can eventually give you financial freedom. Such a simple concept, with monumental results.

Let me know if you are going to take on the challenge. I will be here for you every step of the way.

Send me an email if you want to talk further about growing your financial lettuce.

tessamarieshillingford46@gmail.com

Thanks

Tessa-Marie

 

 

 

 

 

 

 

 

 

 

How To Pay Off Your Credit Card

How to Pay Off your Credit Card

With this post, I promise that I will show you how to pay off your debt before January 31,2018.

Last week I showed you how to save money for the Holiday season. Many of you wanted to know why I did not give a tutorial on paying off the debt instead.

My reason for showing you how to save money first is because we are told to pay ourselves first. By saving money you are honoring yourself.

The first step is to get familiar with the amount you owe. Do not guess the amount, look at the bill or bills and total the amounts.

For example, if you owe $2,600.00, the table below shows what you need to pay monthly in order to pay off your debt in 1 year. You can also see how much interest you are paying monthly, as well as your total interest paid for the year.

It’s important to pay your bills as you get paid, either weekly or bi-weekly.

Let’s use that $2,600.00 debt again plus $282.51 interest over one year. If you get paid bi-weekly, divide that amount by 26 [2,882.51/26 = $110.89] every payday.] If you’re paid weekly, divide that amount by 52 [$2882.51/ 52 = 55.43. ] Your credit card payment is monthly but you can choose to pay those amounts every payday. When you pay your bills as you get paid you will notice that your cash flow is more evenly distributed.

The reason why we incur debt is simply because of the lack of cash flow. Remember you have also been saving, so you now have cash on hand to do your holiday shopping next year.

Payment Summary

Event Amount Term Period
Loan $2,600.00 1
Payment $246.11 11 Monthly
Payment $174.23 1
Payment Schedule

Event Loan Payment Interest Principal Balance
Loan 1 $2,600.00 $0.00 $0.00 $2,600.00
Payment 1 $246.11 $39.87 $206.24 $2,393.76
Payment 2 $246.11 $40.64 $205.47 $2,188.29
Payment 3 $246.11 $35.95 $210.16 $1,978.13
Payment 4 $246.11 $33.58 $212.53 $1,765.60
Payment 5 $246.11 $29.01 $217.10 $1,548.50
Payment 6 $246.11 $26.29 $219.82 $1,328.68
Payment 7 $246.11 $22.56 $223.55 $1,105.13
Payment 8 $246.11 $18.16 $227.95 $877.18
Payment 9 $246.11 $14.89 $231.22 $645.96
Payment 10 $246.11 $10.61 $235.50 $410.46
Payment 11 $246.11 $6.97 $239.14 $171.32
Payment 12 $174.23 $2.91 $171.32 $0.00
Grand Total $2,600.00 $2,881.44 $281.44 $2,600.00 $0.0

If you have any questions or comments, feel free to reach out to me.

Thanks,

Tessa-Marie | tessamarieshillingford46@gmail.com