Welcome to Day 7 of the Financial Freedom Challenge! We are at the end of the first week of our challenge and we learned many important things (or at least I hope!). We took our firsts steps towards Financial Freedom, so be proud of your commitment and be prepared for the next challenges. I want to remind you that the final reward will be wonderful!
I anticipate that today’s goal is not exactly “daily”. In fact, it is more a goal that you will have to complete in a month or two depending on your possibilities.
What’s today’s task?
Surely you will have read the title: starting from today we start to save 1000 EUR for our new bank account that we have created yesterday. Our ultimate goal is to create an emergency fund in our bank account dedicated to savings and investments.
Having an emergency fund is a good habit and I suggest you to start creating it as soon as possible. The general rule says that an emergency fund should consist of at least 6 months of living expenses.
I understand that creating such a fund could require a year or more so for the moment we’ll start by saving 1000 EUR.
I have already written an interesting article in which I explain 6 ways to save more money. Check it out and apply the suggested advice.
Let’s see some recommendations to save our firsts 1000 EUR:
- Think about your active subscriptions (TV, Internet, Netflix, Spotify..). Do you need all of them? Is there a way to save money by modifying them?
- The same for your insurances (car, house, life). Can you save money by changing them? Open a comparator and find it out now!
- Cut your banking costs. Negotiate your actual fees or look for a less expensive bank account
- Sell stuff that you don’t need
- Stop buying useless things
Put your savings into your second bank account (dedicated to savings and investments) and do not use this amount for daily expenses. This sum is the beginning of our emergency fund and we will have to use it only in case of emergency.
Save 1000 EUR now! It’s not important the time it will take, just do it. The important thing is getting into the right mindset and keep it for our entire life. I assure you that saving money is much easier than making more money.
Pay attention: Take a maximum of 2 months to achieve this goal. Plan in advance a “Saving Plan” that tells you how much money you have to save day by day if you like. It could be a fixed sum (for example 10 EUR per day) or a variable sum.
For instance, this is a Saving Plan with increasing savings day by day:
This is just an example. You can find countless examples on the web. Just google “saving plan” or “monthly saving plan”, choose the more suitable for you and start saving today!
A brief summary of today’s task of the Financial Freedom Challenge
- Get into the mindset of saving money and creating an emergency fund
- Use the advice cited here, on the article “6 Ways to Save More Money” and on the Financial Freedom page
- Download and follow a Saving Plan if you think you’ll need it
- Achieve the goal of having an emergency fund of 1000 EUR in your second bank account
I already achieved this goal. When I opened my second bank account (Hello!Bank, code MGM307834719 to receive 200 EUR Amazon Gift Card) I immediately transferred 1000 euros I made working as a waiter. Now it’s my emergency fund and I never touched it (fortunately). Now I’m working on increasing it. My goal is to have an emergency fund capable of covering 6 months of living expenses. But I need more time to accomplish this. I’ll update you in the future about my progress, so stay tuned.
Some suggested resources:
- You Are a Badass at Making Money: Master the Mindset of Wealth: Learn how to save your money (Buy it on Amazon)
- How to Save Money: 25 Step-by-Step Tips on How to Save Money by Cutting Unnecessary Expenses Without Sacrificing the Quality of Your Life (Buy it on Amazon)
This was the seventh step of the Financial Freedom Challenge. It is very important especially for the mindset that it requires.
Now that you’ve completed Day 7 look back at this first week of the Financial Freedom Challenge and compare your situation before and after. Do you notice some differences/improvements? Share your experience in the comments, it may be useful for other readers 🙂 I’m really interested in your opinion, so please do it!
Come back tomorrow for Day 8 and remember to follow us on Facebook and Instagram! Share this challenge on your social media: this will keep you motivated during the path, trust me 🙂 If you want direct contact with me (answers, discussions, doubts, advice…) and the other participants, join our Telegram groups (ENG Group, ITA Group).
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