Friday, August 26, 2011


Hi, I’m Elizabeth Parker and I’m a guest blogger this week.  My friends at Grandmother, Incorporated have asked me to write this blog about how to effectively handle money.  You see, I’ve always been a financially responsible person who could think of ways to stretch my money, and that has led me to three careers dealing in finances over a 30 year span.
The first career was as a teller at a Savings & Loan.  That is when I decided that I loved dealing with other peoples’ finances, so I earned a Bachelors' degree in Business Administration with a minor in Finances and Economics.
The second career was as a Manager/Loan Office/Discount Broker at several commercial banks.  My third career has been that of an author.  I wrote a book titled Financial Health in the SpiritMy book is designed for the average, everyday person with no formal financial training, to learn how to manage their finances and I would like to offer a few suggestions on you can start saving. 

1. Start Small

You can begin by saving as little as $5.00 a pay period.  That’s the equivalent of saving for the price of a six-pack or the price of a pack of cigarettes.  Saving $5.00 every week is only $20.00 a month.  If you save that amount for 12 months that means that you have saved $240.00 a year.  Starting small is better than not doing anything except wringing your hands

2. Give up something to reach a financial goal

If you think tht saving $5.00 a week is too small of an amount, then up the ante by saving the price of eating out, or the price of a pair of shoes or the price of a movie ticket.  Based on your life style, determine what you are willing to delay having for another time and put that amount aside to save. 

3.  Put the funds in a lock box or an envelope until you save enough to open an account
Most banks or credit unions will open an account with a $100.00.  Do a little research and find out which financial institution has the best deal concerning a savings account.  Opening a savings account is best because there are withdrawal restrictions on savings accounts.  These restrictions can help keep you on track.    

 4.  After you put the money in the bank forget what you have in your savings account, but don’t forget about adding money to it regularly           

To avoid running to the bank every week continue your savings at home until you have $50 and then make a deposit at the bank.  The fewer times  that you go to the bank the less you will think about that money and want to spend it. 

 5.  Keep a log/record of your money

The bank gives you a monthly statement but an additional record helps you see how often you are setting aside funds and how much.  You will not need to count the money every time you put money in you envelope. Also, maintaining the date and amounts in your record gives you a check and balance when your statement comes.  Save your deposit receipts.  They should become a part of your personal records.  Remember that banks can make mistakes too.  

6.  Set a goal as to how you plan to use the money

Example:  In 3 months I need $100.00 to pay my car insurance.

If you have been putting aside $20.00 a month for 3 months, you will have saved $60.00 toward that bill.  Then you will only need to use $40.00 from you current paycheck to pay that car insurance.  Short term savings is another way of preparing for future events.   

7.  Write your goal down, so if you are tempted to dip into it you will remember the purpose of the savings.  Start today.  You won't be sorry.

These are just a few of the suggestions that I would like to make to those of you who haven’t been in the habit of saving.  You’re well worth paying yourself something after all your hard work.  Visit my website www.fhinthespirit to learn a bit more about how you can effectively handle your finances. 

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