Tuesday, June 12, 2012

The Frugal Files: Daddy's Little Frugal Girls: Pay Yourself First!!

Memorable Money Words from Daddy
A Musical Tribute to our Fathers on their Day

Welcome back to The Frugal Files, where we are celebrating Fathers, Daddies, Papas, Pops’ or whatever you call yours, all month long!! To honor my own Daddy, I’m sharing with you life advice he’s shared and continues to share even today.

Last week were the words that was always suggested and heavily recommended by my parents, to “pay what you owe”. It sounds simple and it is if we are truthful with ourselves and others. If you use a product or service, pay for it. So when it comes to debt and getting our financial ish together, that’s the example we need to use as a standard. We want what’s due to us and so does the companies and cards we hold. Let’s get them paid off so we have more money to save, donate and invest in both ourselves and others.

Speaking of investing in ourselves, that’s the next nugget, a la Daddy, that we’re discussin.

Daddy ALWAYS said: “Pay Yourself First”
He Was Really Sayin' Somethin'…The Velvelettes

Although he said it all the time, I didn’t really understand it until I was old enough to have my own money. Even then, I was often in conflict with my Mom’s words of paying what you owe though. I would find myself paying everything only to find myself with nothing left. Now, being the Frugalicious Diva I am, I know the importance of setting money aside for myself, as well as mine my family’s future.
Ways you can pay yourself can be as simple as saving for a rainy day. It doesn’t have to be anything fancy, so your old sock or under your mattress is fine. Just keep in mind that neither your bed nor laundry will pay you interest for that hiding place.

Another way is to take advantage of the 401k (or 403b for not for profits) at your job and let your employer match it. Sometimes they pay up to 10%, so pay the max. It’s free money!! This is why we save, be it in bank accounts or mutual funds; retirement planning is important to not only our lives but for our children’s lives. Let’s put ourselves in the position to enjoy your later years without being a financial burden to our family.

Also, set up a 529 account for your future college kids. We talk about this but don’t often enough walk about it. I’m seeing more and more parents struggling to send their children to college simply because we don’t plan to get them there. It would behoove us to make room in our budgets. It’s hurtful if a child cannot attend the school of their choice because we didn’t prepare well. The great thing about the 529 accounts is that other people can contribute, so instead of asking for gifts at holiday and birthday time, have them instead add to the child’s college fund. It’s a forward thinking gift from which many will benefit for years to come.

Lastly, plan for big-ticket items like cars, houses and vacations. If you don’t take care of your business today, no one will do it for you tomorrow. A few sacrifices in entertainment for the ultimate entertainment of that tropical vacation, is definitely worth it. Shaving off extras you don’t need in your budget in order to set aside cash for enjoyment, that everybody needs, is essential to the principle of paying yourself first. This Daddy’s Girl, knows that Daddy Knows Best!!

Now that you’ve got Daddy’s advice, use it and create a truly abundant life for you and yours!! Do what you need to do now in order to have the things you want later. Have a great Father’s Day and honor your Dads, whether they are still here with us or not. Enjoy!!

School is out for the summer, but it doesn’t mean our kids should stop learning. Summer Reading Clubs all over the country have libraries buzzing all day long. Challenge your children to read 9-10 books this summer. That’s three books for every summer month!! Have them give an oral or written report about the books. They will read about new adventures, stimulate their minds and stay out of trouble!! Reading is learning!!

Frugalicious Diva
Follow me on Twitter at @FrugaliciousDva

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