"Padding" The Nest Growing Your Nest Egg By Changing Your Habits

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By Mia Bolaris-Forget

Bet you’re spent from the honeymoon. Question is how much have you spent…and how much have you saved?

If you’re like most newlyweds, or like most people in general, you have difficulty budgeting your time and your finances.

Remember, married life means more than just double the fun. It also means double the responsibility and quite often, double the expenses. If you are not careful your energy and your bank account could soon be depleted.

Think about all the fun you (both) just had. Bet you’d like to do that again soon. However, it’s no secret that you won’t be able to without the funds affording you that opportunity…so, when it comes to saving…there’s no better time than the present.

Money in the bank can help with buying your first home, paying off the mortgage, upgrading your computer or car (to that family vehicle you may soon be needing), even helping with those potential doctor and medical bills that you’ll need to help ensure a happy, healthy future.

Ok, so far, I probably haven’t told you anything you didn’t already know or realize. But what I’m about to propose is that saving and spending go hand in hand. In fact, altering your spending habits directly implies altering your saving habits.

Authorities identify the biggest problem with saving is that our spending habits directly correlate with earnings. And they say the key to successful saving is our conscious choice, that’s right, I said conscious choice, to spend less than we earn.

Statistics show that an estimated 20% of our household income is invested in our personal leisure “accounts”. In fact it’s suggested that we squander most of our “would-be” savings on everything from lattes to lavish “luxuries”.

Experts encourage couples to reduce their monthly “allowance” for savings and adjust their lifestyle accordingly.

A recommended starting point is getting it on paper (first), then set a goal and a time frame in which to accomplish it. If you have a larger goal in mind, break it down and approach your goal in increments.

Pricey Pitfalls:

Everyone has their “weaknesses”, but achieving your objective means being able to avoid your temptations.

Some of the most common money (saving) traps people fall into include:
1. “Stealing From Peter To Pay Paul”: We’re all guilty of “financing” our spending through our savings account from time to time. The penalty: a self-imposed depletion of our account and a significant setback to accomplishing our goal. And, feeling like “you’ve failed” often means giving up on the goal all together. Financial aficionados advise identifying the circumstances leading to money withdrawal. Drawing money out of your account to cover daily expenses? Perhaps you need to re-evaluate how much you allocate to spending each day, what you consider “extemporaneous” expenditure and come to the realization that your savings should NOT be touched under any conditions, except for those that qualify as emergencies. Maybe you need to reassess how much you set aside each week and determine if the amount “unrealistic”.
2. Spreading Yourself Too Thin: With so many different types of investments and savings venues, professionals point out that you research your options and determine which will work best for you. They suggest, that the best route for short-term financial goals is generally a straightforward cash-based investment. Long-terms goals, on the other hand, require investments that “grow”, such as the stock market.
To help avoid further temptation to dip into your reserves, experts suggest setting up the savings account so that your investment isn't so easily accessible. Consider using a facility across town and think about establishing an account that requires advance notice before withdrawals.