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[1 Dawdlin @dawdlinParticipant 5 SocietyStars Rank: Recruit]

I recommend that you save automatically BEFORE you pay bills. Have the money taken from your check and deposit directly into a high-yield savings account. For emergency funds, I don’t recommend investing in long-term investment funds or stocks. This is because should you need the money and you have to get to it quickly, you have an extra hurdle, and mutual funds and stocks carry far more risk than a secure high-yield savings account. But more importantly, if you withdraw the funds from an investment that has been held for less than a year, you’ll have to pay short-term capital gains tax on the earnings. In a high-yield savings vehicle, you are free of a higher tax rate on the earnings. Of course, the earnings will be taxed as interest at your normal income rate.

American Express has the best high-yield savings account that I could find right now. It’s a great 4.35% APY!!! This is a safer bet. Here’s the link: https://www.americanexpress.com/en-us/banking/online-savings/high-yield-savings/

[1 Dawdlin @dawdlinParticipant 5 SocietyStars Rank: Recruit]

Most people assume if they only have a small amount to save and invest that it’s not worth the bother. But, is $0 saved better than some? Living paycheck to paycheck feels awful and stressful. Having money in the bank makes you experience feelings of abundance every single day. That is priceless. It requires sacrifice, mostly of the short-term instant gratifying stuff, but it changes your whole life from one of stress and destitution to “riches”. I don’t mean you need money to be happy, but certainly having no money isn’t the makings of happiness. Money frees you! It frees you from worry that you and your family will have what they need. It frees you from the stress of not having enough to cover your debt (which I think you should free yourself). It frees you from having to work a job you hate. It frees you from the stress and worry of losing your housing, food, etc. It frees you from work entirely if you plan well. That’s my why.

$50 a month at a 7% return compounds to ~$24,791 in 20 years. Try this calculator for fun and try different amounts: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

[1 Dawdlin @dawdlinParticipant 5 SocietyStars Rank: Recruit]

I had the “sleep paralysis” experience when I was ~22 years old. I’d just laid down for the night and I could swear I was not yet asleep. As I lay on my back, suddenly I felt a dark presence above me. I couldn’t see anything, yell, or move a muscle. I just knew in an instant that I was being possessed or something. I felt instant doom and massive desperation for it to stop. My body felt very strange like it wasn’t my own, and somewhat jelly-like. My husband was asleep next to me and I wanted badly to wake him to save me, but I couldn’t get any sound out. So all I was left with was to pray silently, so I prayed my ass off and I was released from the grip of the experience. Recently, I’ve read of many others who describe the same experience online. I didn’t know this was a somewhat common experience. Science says they have an “explanation”, and they call it “sleep paralysis”. However, how does science know it can be explained as the body going to sleep without the brain, or something like that? What if people are really encountering a demon? Honestly, there’s NO way to prove it’s not. Science has a theory and that is all.

I still shiver when I recall the experience. It was the most terrifying thing that I ever went through… and I went through terrible stuff, believe me. But I’m forever haunted by that night. I don’t like to be alone in the dark because I always recall that night. It changed me.

[1 Dawdlin @dawdlinParticipant 5 SocietyStars Rank: Recruit]

Keep it simple! For 25+ years I’ve used a very simple spreadsheet to track my budget. It included monthly income, broken out by pay period, my savings goals per pay period (I always deduct savings first), and an itemized list of bills to track. On each payday, I update the sheet with any changes. I have a section for the month that has a list of bills to pay each pay period. I diligently go in at each payday and update the amounts paid. I repeat this over and over, month after month, payday after payday. I have always aimed to save 30% for short and long-term investing. This includes 401K, emergency funds, vacation, etc. The “pay yourself first” is insurance that happens. If I needed more to cover my bills, I’d know that I had an income problem to fix. It’s always either an income or outgo issue. It’s easier to fix the former IMO. I never reduced my savings goal, I would try to address the money gap on the income side by taking on extra work if possible.

This method is very simplistic. I believe people overcomplicate the budget process, get frustrated, and then toss it. Keep it simple and find a method that works for you. The main goal is to always live below your means so that you can build financial security for the future.

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