As a serial entrepreneur, I know of opportunities and ways to save and cut back on expenses. However, I am not a financial expert so I asked Jasmine Johnson, an accountant/accredited financial counselor at Square 1 Accounting LLC, to shed some light on this topic.
To foster a saving mindset, Johnson recommends:
Creating a savings plan Starting small Getting an accountability partner who holds you accountable Refusing to dwell on past mistakes Never indulging in retail therapy Hiring a financial coach, if necessary Keeping your “why” handy
Create a savings plan Are you saving for a vacation, new car, new phone, emergency fund or just because? Identify the amount it will take to achieve that goal and go from there. Start small Be realistic about what you can spare or set aside. That may be $20 a paycheck or $50 a month. Whatever it is, just get started. At the beginning of the year, for example, save $1 the first week, $2 the second week and increase by a dollar every week. By the end of the year, you’ll have saved more than $1,000. It’s an easy and fun way to save. Get an accountability partner Regular check-ins with someone who will ensure you stay on track can be useful. This should be someone capable of saying you don’t need to make a certain purchase, for example, because it doesn’t align with your current financial goals. Don’t dwell on past mistakes Grant yourself some grace and move forward with the current financial plans. The decisions of today will determine the outcomes of tomorrow. Never indulge in retail therapy Shopping is a temporary reprieve. Don’t feed the beast. Many feel relieved when spend money, but those actions can lead to avoidable financial woes. Manage the feelings and navigate financially healthier ways to cope. Hire a financial coach, if necessary Getting someone knowledgeable and qualified to assist us as you navigate finances can help you start things out right and encourage greater success. Always keep your ‘why’ handy Ensure that your goals and the things you’re working to achieve stay at the forefront of your mind. This reminder may be enough to help you stay on track. Regardless of our upbringing and current socioeconomic status, we can save. No matter how little or how much, create a plan and start today.
First published in Black Mental Health Today, Summer 2023 (Vol. 8).