The Savings Account
The next activity is so easy… ask your bank if you do not already have one… to open a linked Savings Account.
From your casual discretionary leftover, you are also going to set up an Automatic Paymen (AP.) That AP is a minimum of 5% (1/20th, 0.05) of your casual discretionary leftover. It doesn’t matter if it’s a dollar or in Petes case literally $16 a week. It matters that you do this. And it won’t hurt either. You will not miss it.
Once this is underway, leave it going. Set and Forget. It’s got a taboo on it to protect it from evil mis-spending.
What is the long term purpose for this? Let me tell you what it is… it is to eventually replace the credit use. You know, the next time you blow up your car? That use. We’re going to remove your credit use and get your life back in your hands, remember?
But it will slowly build. The advantage of using a savings account initially is so you can also gain a little interest (but just like big man…. small part syndrome… little means little.) It is what it is. The sun will still rise tomorrow.