When someone or some couple finally makes the decision to put their personal financial picture on the right path they typically set a vision of how it will look when they finally get on the right path. As that vision becomes clearer they become more aggressive to achieve and reach the vision they are after. Aggressiveness is huge in success. While I am working to help each client build that aggressiveness, I am also helping them see that their aggressiveness must be tempered with reality.
That thought of adjusting aggressive to make sure we meet reality is often a situation that, in the mind of many, is a conflicting statement. “I thought you wanted me to get out of debt” or “I thought our aggressive approach was to build an emergency fund” or my personal favorite, “I really should be building my investment account” are some of the statements I hear from clients who are now aggressive in tackling they step they are focused on.
In no way do I want to pour water on their fire, but I have to help people understand that regardless of your aggressiveness some things are going to happen and you have to be ready.
What are those things? Well, you probably have your own list but here are a few. With each one, you can save a small amount each month knowing the total amount is something that, if you do not have at the time needed, will likely have you scavenging or borrowing!
HOA Payments
Kids Activities
Vehicle Maintenance Expenses
Christmas
Vacations
Replacement Vehicle(s)
With each one of these, everyone should be saving something each month anticipating what that known, or unknown, expense will be in the future.
Being aggressive in paying down debt is awesome. Paying it all off and not having the money to put the needed tires on your vehicle will likely require you to go right back into debt.
Be aggressive, but temper your aggressiveness ONLY enough to accrue or save for reality.
We are so thankful that we have implemented the savings allocation portion of our budget..it is a wonderful feeling when we go to the dentist and already have the money put back to pay for it; or better yet, the new tires we just had to purchase unexpectedly and already had the money in savings!!!my absolute favorite “game changer” if you will is the time Christmas rolls around we don’t have to use bonus check money, etc….to pay for gifts, we already have it!!!!! If you haven’t started a savings allocation process, today is the day…you WON’T regret it!!!
Thank you parkey for speaking financial wisdom into our lives.
Kevin and Sarah conner 🙂
Great post to encourage everyone. It is a nice feeling to know you have planned and prepared for upcoming expenses because you know that they are coming. Congratulations on a bonus check that was not already spent!