(Continuing from Part 1, we review the final two takeaways from my friend’s experience at FPU.)
They gave an example of buying a car…
If you plan to buy a car that will cost you $250 in payments over three years, start now and pay yourself that money until you come up with the total price of the car. You can then buy it in full, avoid a loan and have cashflow for saving or buying more important items.
I’ll admit, I’ve never done this to buy an actual car, but I have used this method for vacations, computers and other expenses and find myself extremely pleased that I did.
Takeaway #2: Save for retirement early.
My husband and I took FPU when we were 24-years-old and lucky for us we were already doing this; or so we thought.
We learned that considering a company’s retirement package when interviewing for your first “big person” job is a must. We also learned that opening a separate account above and beyond what is offered from an employer is considered best practice (this is the part we weren’t doing).
If you start putting money above and beyond what you’re contributing through your employer, you’ll have more to compound over time. After this class we opened an IRA, began contributing a manageable amount each month through an automatic debit from our bank account and never missed it. Now, 10 years later, we have a sizable amount that will eventually help us retire 5 years earlier than planned.
Takeaway #3: Live like nobody else so you can live like nobody else.
FPU and Dave Ramsey say this a lot. They’re basically saying that sometimes you have to cut corners, hustle harder and really focus on money management so that someday you can live like no one else. But in the meantime, that may feel like you’re not living like anyone else in your circle.
When they’re going out to dinner, you’re cooking in and taking your lunch to work instead of eating out with your colleagues. It’s painful in the short term, but the long term gains will be well worth it.
Do some research. Grab a friend. Sign up and go. You’ll be glad you did and so will your savings account!
Share the wealth and share this article! You know you have friends out there that have been wondering the same thing. I was glad to have my friend share these lessons with me, and your friends will be glad that you shared it with them too!
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