Without a doubt, we all want to “win” this year with our finances! In fact, we may even attempt to deprive ourselves of our day-to-day enjoyments in order to build our bank but let Winnie Sabbat tell it, that’s completely wrong!
FYI: People can spend an average of $1300 a year on their daily cup of java. Seems like the perfect place to budget cut, right? Well, not exactly. We will get to that later.
When I got my first paycheck as a teen, I was elated. I had finally matured enough to get a job and secure a bag, even if it was just for the summer. The idea of being able to purchase what I needed and contribute to my family made me feel absolutely mature and liberated.
Now that I am 20, there is so much more to getting a check. Not only am I concerned about what I need, I have to also pay bills and save money for future endeavors. This can sometimes be complicated when it feels like the bills are more than what I earn, but in order to make ends meet, I have to make sacrifices, right?
I have to admit, that there are a few things that I love to splurge on, and one of them is definitely a good ol’ Caramel Frappuchino from Starbucks to help kick start my day, but my daily purchase of joe became quite expensive for a girl that attends school and hustles as a freelance writer. When I went over my weekly budget, I noticed that the sweet delicious drink was not only cruel to my waistline, it was also a guilty pleasure that was breaking my bank. Ouch!
So I did what any mature woman would do. I cut back on my tasty treat for a year and actually discovered that I was able to save close to $1,300. That’s quite the bag to save, right? Well, according to Winnie Sabbat, the Financial Director at Red Antler, cutting my cup of joe would not make me rich. Say what?!
“Depending on where you live, a cup of coffee can cost you $5 a day or $25 a week, multiply that by 52 weeks you end up with $1,300, which isn’t much. Realistically speaking you will never get rich by saving an additional $1,300 a year,” Winnie breaks down.
Shook by her statement, I had to ask, what I can do to prepare for my future savings? Winnie shared with me her expertise to help me figure out ways to save for a rainy day and assist me in being ready to invest my funds for a comfortable future.
“The first thing you need to do is to increase your income,” she tells me. “Look at ways to negotiate a raise, getting a better paying job or my personal favorite, starting a side hustle.”
I could definitely appreciate the idea of a side hustle. For example: I am a damn good baker and I often sell my baked goods at events in my neighborhood. It can sometimes bring in a few hefty bucks. So, find something you love to do on the weekend, and get your hustle on!
Winnie also suggested that I continue to build my professional skills. “Forego your next girl’s trip to Bali and take the money to attend a conference in your industry where you can learn and network.”
Check. I have chosen to take a few courses online to enhance my writing skills. I have also done one better and signed up for a few free online courses to help me advance in additional fields. In addition to her advice, I still plan to enjoy family vacation, but we will be traveling within the states and finding discounts that accommodate traveling in numbers.
On the topic of family, thanks to the guidance of my parents, I have always put money away for a rainy day because you just never know. Weekly, I take a percentage of my check and place it into my savings account to be untouched.
Winnie praised this idea but also mentioned that saving money for a rainy day can also help to reduce anxiety about your financial security. “Financial security in this manner can boost your confidence and willingness to step out on faith and find something that can get you more money without being under duress,” she shares. “No one negotiates well when they are facing disconnection notices.”
Overall, learning to manage your money better is essential to preparing for your future. “Be concise on where and what you spend your money on,” Winnie advises. To start, I removed my credit card information from websites so that I don’t make random online purchases of things I don’t need.
“If it doesn’t benefit your overall wellbeing, improve your professional development and help your future let it go,” Winnie points out. “For example, don’t spend more than $50 a week until that $50 represents such a small amount of the overall money that you are bringing in monthly that it will be inconsequential.”
If you ask those who have made millions, they will all agree that there is a special discipline in saving and spending your coins that everyone should get into. It will take time and sacrifice but in the end, it will all be worth it.
Self-made millionaires are risk takers and hustle until they make their dreams become a reality. They didn’t get there by playing it safe and solely cutting back on a $5 cup of coffee.
To learn more about Winnie, visit her on Instagram @winnie_sabbat