Goal Setting: Step 1 of Saving Money

Hey everyone,

I hope you all are having a great week so far.

Today, I want to start sharing with you how you can save money.

The first step to save money is to set goals on what you want do with the money you saved. I recommend doing this before starting a budget. This will help you stay focused on sticking with the budget and not get tired of being on a budget. If you don’t have a financial plan, you will not stay on a budget for very long.

For goal setting, I’m going to share with you a website that will help you out with setting goals for saving money. You can get it by going to www.centsiblyrich.com , scrolling down the page, looking to your right, and signing up to get your free goal worksheet. Once you sign up, check your email for it, download it, and print it out. Please don’t delete that e-mail when you have downloaded the worksheet (I will tell you at the end of the post what you need to do). In my opinion, her articles have great content in them that have helped me out.

Here’s what I filled out on the worksheet (This will give you a general idea on what you need to do):

-My Goal: To be able to live off less so I can work a lower paying job. (I would like to work closer to home. Most jobs in my hometown do not pay a lot.)

-Did I try to do this in past (if so what can I do differently)?: I tried to do this when I worked minimum wage. I failed at it because I was too lazy to stick with it (and it got boring after a while). I will do this task differently by using visual representations (to stay focused) and giving myself small rewards each time I accomplish one of the steps to obtain my goal.

-What steps will I take to make my goal?

  • Figure out the expenses going out of my account each month (By going through 6 months worth of past expenses and categorizing them to the right expense category)
  •  Find out how much I can make with a lower paying job (by using Paycheckcity.com and typing in variable hours with the amount of pay I would get for low paying jobs I am interested in applying to).
  • Use the income amounts and compare them to the total amount I spend on expenses.
  • If there is more income coming in than expenses I will leave it alone. If not, I will start marking expense categories I can lower my expenses on (e.g. Groceries, Gas).
  • Write down expense categories I am not sure how to reduce (e.g. Utilities) and research on how I can reduce those categories (e.g. other blogs)
  • Apply the methods from my research into reducing my expense categories.
  • Eventually turn it into a budget I can use from month to month.

-How important is each step?

  • Very important. If a step is not done correctly, it could hurt me from saving money.

-How difficult will each action step be?

  • The most difficult step will be the ways I can improve on reducing expenses I struggle with. The reason for that is there are some expenses I have no control over (e.g. Internet bill in a rural area). Every other step should not be as hard to do.

-What obstacles could I encounter? How exactly will I deal with them?

  • One obstacle is (as I’ve just mentioned) that there are some expenses I have no control over. I might have to find more ways to reduce other expenses I know I can control.
  • Another obstacle is that no matter how low I cut my expenses, my expenses might still be higher than my income. I might have to get another job or find other sources of income.

-Do I have what I need to do each step?

  •  I should as far as I know.

-Will I stay on doing each step?

  • I will do my best.

You, the reader, will be my accountability partner on me staying on with this goal. I will update you all every Friday afternoon on how I am doing on this goal.

Having a goal helps you stay on track with your finances. If you are not aiming at something when saving money you might not be saving money for too long. That was the mistake I made before when I got off track.

Please share with me what your goal is on saving money.

If you liked this post, please share with your friends.

Thank You and Have A Great Day,

Millennial Dude

P.S. Please go back to the email you downloaded the worksheet and reply back (to Amanda at Centsiblyrich.com) the answers to the questions you are given. She is interested in helping others with their finances as well as I am. Please read her blog and subscribe to it.

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One thought on “Goal Setting: Step 1 of Saving Money

  1. Hey Millennial Dude! Thanks for sharing my goal worksheet and website! 🙂 You really put a lot of thought and planning into your goal, plus sharing progress publicly will provide a good deal of motivation! I’m looking forward to following along with your progress!!!

    Liked by 1 person

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