Home / How to / How to Save $1,000 Fast

How to Save $1,000 Fast

– Would $1,000 give you some peace of mind? Well, in this episode, I'll show you how to get it (upbeat music) Hey everyone, today is going to be fun because we are going to talk about your first step to never worrying about money again

This is going to be the first step on a journey for you to take control of your money So, we're starting a brand-new series today walking through the seven baby steps So yes, there are seven of them And it is a proven plan that has helped millions of people win with money So today, it's the first day of the series so we're going to start with Baby Step 1, which is a $1,000 starter emergency fund

We're going to deep dive into this step And also in this episode, we're going to talk about ways to cover your expenses when unexpected emergencies pop up And I'll answer some of the most common questions from people like you as they go through the Ramsey Baby Steps And I love this first step because, really, this is the buffer between you and life And $1,000 may seem like a lot, but there are ways that you can save for it

So, if you want to keep track of your progress, head to the show notes of this episode and get a free printable that you can color in as you go All right, some quick ways to save $1,000 Are you ready? Cut out all nonessentials

Make a budget Use cash-back apps Use energy-efficient lights Brew your own coffee Pack your own lunch

Meal prep Wait 24 hours for a big purchase Shop your insurance rates every year Freeze your spending temporarily Do a no-spend challenge

Order water at restaurants Switch grocery stores Try things like Aldi Buy generic Use gift cards at Kroger and then you can use those points to get gas

Use your Instant Pot instead of going out for dinner when you're too tired Carpool to work Pay with cash You actually spend less when you pay with cash Save loose change

Sell your kids' clothes at consignment stores Sell things that you don't use anymore If you haven't used or worn something in the past year, sell it Sign up for free customer reward programs that are not credit card based Stick to your grocery list

Find restaurants where kids eat free Cancel unused subscriptions Do your own lawn care, cleaning, nails, hair—all of that Go have a yard sale Keep selling some stuff

And finally, if you have whole life insurance, you need to switch to term life insurance So, term life insurance is a policy that you take out, and in the event that something happens to you, your family gets a specific amount of money that is previously decided on Now, there are several different options you can choose from, and I suggest you get a 20-year policy that is 10 to 12 times your annual income Now, a lot of people treat their whole life policy as an investment rather than insurance So, you should not treat these the same, okay? Your investments and your insurance should be separate

And whole life insurance costs you so much more money over time, and the coverage is just not as good Now, if you already have a whole life insurance policy in place, you can cancel it, cash it out, and get your money back But only do this after you've gotten a term life policy in place Now, I recommend using Zander Insurance They make everything really easy for you, and they shop around for the best rates to keep the costs really low

So, make sure you visit zandercom to get started today All right, $1,000 emergency fund, you guys—Baby Step 1 This is the easiest step of all the baby steps, but it's also the hardest (upbeat music) It's the easiest step because it's $1,000

Now, that may seem overwhelming to you, but it doesn't have to be, okay? Look at your budget Go to the last few episodes when we talk about budgeting Cut some stuff out It's great You can get $1,000 really, really quickly

But it's the hardest step because it means that you are changing You are changing the way you are dealing with your money You are changing the way you are viewing your money I mean, everything is about to change And no one likes change

Change is uncomfortable Change is hard It's not always fun But there was a moment for me where that change happened, and I talk about it in Financial Peace University So I want you guys to take a look

Here it is All right, confession: I am a spender And I hated budgeting That's right, some of you probably just like, fell out of your seats that Dave Ramsey's daughter hated budgeting, but it's the truth It's just not naturally what I'm good at

I'm kind of like, not great at details And just the idea of budgeting was always so hard for me to grasp I actually could understand it, but doing it is what was difficult And I can even remember when Winston and I, my husband, when we were engaged, we went to premarital counseling, and even our premarital counselor said, you guys should do a mock budget together I was like, how much did my dad pay you to say that? Because I was like, oh my gosh, I know we need to

Just doing it is so hard! And so, when Winston and I got married, we didn't budget We didn't budget for like the first six months of our marriage And then finally, one day, Winston came to me, and he was like, Rachel, we need to do a budget together And I just remember thinking, you're one of those, aren't you? But I was like, okay I know I know I need to

We need to do this together Just doing it I was like, okay, let's do it

So, I remember, we sat down in our little condo that we were living in, at a kitchen table, and we did our first month's budget And you guys, it was a disaster Like, it was terrible I think we budgeted $50 for food or something for the whole month Like, it was so bad

The second month I remember it got a little bit better We learned from our mistakes We went, okay, let's adjust these categories, but it was still a little rough The third month, it actually started working So much so that we were like, oh my gosh, this is great

This is what living on a budget feels like This is amazing And Winston and I are not perfect with money, but I can confidently tell you that we've done a budget pretty much from that point ever since So much so that a budget became a part of our life, that we took a trip to Florida one year before we had kids It was kind of our last big hoorah

And we were flying down to Florida, and Winston looked over at me in the plane, and he was like, "Hey Rachel, listen, I want you to relax on this trip I don't want you to worry about anything So you don't have to think about the budget at all, and you can just spend money" Mmm hmm, yes he did Yes he did

I was like, wait, what? I was like, "For real, I don't have to think about the budget and I can just spend money?" And he was like, "Yeah I mean, if you're bumping up against the trip budget, I'll let you know But yeah, just enjoy" I gave him the biggest kiss in the world I was like, "Babe, you're letting me live in my strengths

Like, this is what I'm good at" And I remember, when we got down to Florida, checked into our hotel, went out by the pool And it was one of those pools where waiters and waitresses walk around, and you can order drinks and food to your seat at the pool It was awesome And so, this waitress walked by and I was like, "Hey ma'am, do you guys have guacamole?" And she was like, "Oh yeah, sure

" I was like, "I'd love some Thank you" So, she brings it, I'm eating it It's delicious And I was getting thirsty, so I asked her then, can I have a menu to look at the drinks? So, when I opened the menu, the first thing I see is appetizers

And I was like, oh And I see chips and guacamole: $23 Mmm hmm, $23! I was like, did the avocados fall from heaven? Like, what makes guacamole $23? I was like, it's okay, Rachel Just spend the money Just spend the money

So, then I go down and I see drinks, and I see lemonade I was like ah, that's great In my head I thought, that's what I want to order And I look over: $18 Mmm hmm, $18

I thought, what? This is crazy And at that moment, the waitress was right in front of me, and she said, "Okay, what would you like to drink?" And I just had this battle going on inside of me And I remember thinking, Rachel, just spend the money Spend the money! Like, go back to your roots Go back to who you were! And I looked at her, and I said, "I'll take the lemonade, please

" And she brought it over, and I took a sip, and I was like, well, that was $150 Jeez And in that moment, I started spiraling I started freaking out because in my head I was like, I just spent so much money on pool snacks that tonight at dinner we can't get an appetizer

We're going to have to go to Walgreens and buy granola bars for breakfast Like, what have I just done? And I was just panicking And in that moment, I realized I was not panicking because of all the crazy expensive prices at the hotel, even though it was ridiculous, I know But I realized in that moment that this was the first time—at that point, in years— that I felt so out of control with my money That I had no clue where my money was going

And that's the moment I realized that a budget does not limit your freedom A budget gives you freedom A budget gives you permission to spend So, I'm telling you guys, this is going to completely change the way you handle money because you're going to have control But if you've never done a budget before, give it three months to get into a rhythm because it's going to take some time

Winston and I totally are a testimony to that It takes about three months And you also will realize that money is relational You have to do this with your spouse Or if you're single, find a friend who is good at money who can look over your budget with you

We love finding new ways to save money We lower categories in our budget, buy things on sale, and even use coupons But we often forget about the biggest expense we have— and I'm talking about your mortgage If you have been in your home for a while, there may be options available that can save you money— not just pocket change, but real money The best way to get started and see what options you have is by the Churchill Checkup by Churchill Mortgage

A quick call with an expert home loan specialist can help you figure out what's best for you and discover incredible opportunities to save time and money To get your Churchill Checkup, go to churchillmortgagecom/churchill-checkup (upbeat music) All right, now we're going to hear stories from people like you who have started the baby steps – We had our son, who had medical problems

And medical bills really have traumatized our future So we really wanted to tackle as much as we could to handle those debts and to get them down as quick as possible So, Financial Peace was the best way we saw fit to do that – We started this class mainly so that we can live our dreams out later down the road – So we could give our kids a better future and show them whatever comes our way in life, as far as the financial or any burdens, that we're handling them

– I grew up with my dad always talking about Dave Ramsey says this, and Dave Ramsey says that And my parents—I think going through Financial Peace University when I was so young— saved for a college fund for me, and so totally had no student loans to pay off So, I actually don't have any debt But now, being in the class, it's kind of fun Because I get to apply the things that I already know, and that I've already learned in my own personal finances – I can remember my parents doing Financial Peace when I was younger

Knowing that that was great for their marriage and for us as a family financially And so, now that we just got engaged, and so we're doing it together – The funnest thing for me, though, was the conversations that we've had about our budget, finding out who is the nerd and who is the free spirit They've gotten me excited about our marriage and taking charge of our finances and getting started on the right foot – I love hearing stories of people who are starting to see real life change

I mean, I'm sure a lot of you can relate to some of what you just heard And I really want you to have that hope, too And I love that they plugged into a Financial Peace University community It always amazes me how quickly people can see the light at the end of the tunnel Now, some of them had some questions for me, so let's see what they are

– A question that we would have Say that we have a little bit of credit card debt and a car payment heading into our engagement, and into our marriage So, we would love to know if there's any other advice or any other thoughts that you may have for us as we move into marriage together

– Yeah, I think, just, if there's anything specifically for an engaged couple moving into a marriage if there's any specific financial advice or conversations that we could have on the front end, that would be great to know – Oh, engaged couples They're just the best, right? The bliss before the reality of what they're about to walk into

Marriage is awesome, but it's more awesome when you are on the same page So a couple things I would say if you are engaged out there, or to this couple specifically: Keep your money still separate Not until the day you say "I do" do you need to combine them So, I don't know whose credit card debt it was, or whose car loan But you keep it separate

You start working the baby steps on your own And then the beautiful thing is, when you get married, then you combine it all together So, I hear a lot of couples say, okay, well, maybe it's his car loan, and his credit card debt, and she doesn't have any payments Well, for her, she could just be saving up a lot of cash And then, once they get married, she can use some of that money, pay off his debt, and together, they're moving on together

So again, keeping things separate until you say, "I do," is huge And also, I would say, don't go crazy with the wedding Really, it's like one of the things people spend so much money on Yes, you want to have fun, you want enjoy your day, all of that But do not go overboard, and definitely do not go into debt for the wedding All right, here's the next question – What advice can you give to keep us motivated going through our debt snowball? – So staying motivated through Baby Step 2 can be really difficult for a lot of people especially if you have a lot of debt, and if it's things like medical debt that you see that you're like, man, I can't sell it Right? Like a car loan, you're like, "Hey, I could choose to sell the car and get out of that debt really quickly

Medical debt is something that does seem to string along But I would say have some quick wins within the big chunk of your medical debt So, look at your medical debt almost as a separate snowball And just kind of separate it out and say, okay, this is what we're about to tackle Like, it's a huge mountain, and there's so much there

But put some mile markers in place and have some celebrations throughout it because you want to be able to feel those quick wins even when the bills are staggering and it seems like that there's so much money there Having those quick wins is going to be so helpful All right, coming up next is a story of the couple who is actually coordinating that Financial Peace University class, so here they are – We had been married for 28 years And we purchased a house when we moved here with debt, and we decided that we wanted to pay that debt off early

And based on some things that we had heard Dave Ramsey talk about And so, we got on that road and went down that path, and we paid off our house within about 10 or 12 years after we moved here And that just really started our process of wanting to be completely debt-free – So, it's become, really, a way of life We've put

All five kids have an opportunity to go to college debt-free We have a fund for their wedding fund, so when each one of them has gotten married, we've been able to fund their wedding without going into debt And it is kind of amazing to see how when you have the extra money to sock away in the 401(k) and savings, that there's not much pressure

There's a lot of peace just to know that we've been able to bless our children And then, we'll be able to retire with a lot of dignity – And now we're just living the life that Dave has told us about – And I would say that we were pretty nerdy about it We actually enjoy our budget

After doing this for 20 years, we've got 20 years worth of data of what our expenses and income is So, we sit down at the first of the year and do it on a big spreadsheet, and then we just really touch base each month to make sure we're where need to be But over that period of time, you know, we've had a car fund so we haven't had a car debt So, to be honest with you, we actually own two homes debt-free

I think we got people's attention the first night when we looked at them and said, this works 'cause we've done it And you can do it too If we can do it, you can do it So we enjoy seeing the success and seeing the plan work And it's really neat to sit in the class— and our class is maybe unique, I don't know because we've got some older folks in there

We've got some folks that are just married We've got some folks that are engaged And it's really neat to see the light bulbs come on, and to kind of pay it back a little bit, and to share what we've learned And that's fun just to be a part of knowing that we've helped them on their journey – So, after hearing their stories, I hope you guys are ready to go out and save that $1,000

I really, really do Because again, it's that buffer between you and life Get started on a plan where you never have to worry about money again! Thank you guys so much for watching, and the Financial Peace University class for joining me They are awesome And if you would like to get anything from this episode, you can find the links in the show notes

If you don't want to miss any of my tips, be sure to subscribe to my YouTube channel, follow me on Facebook, and my podcast And as always, make sure you take control of your money and create a life you love

Source: Youtube

About umoh

Check Also

HOW TO: Change Your Steering Wheel

– Steering wheels have been allowing us to point our majestic horseless carriages wherever we …