We borrowed inspiration for this month’s blog from Franklin Covey’s “The 7 Habits of Highly Successful People.” Sorry/not sorry for the spin off but, we hope you’ll enjoy these 7 habits displayed by highly successful savings passionistas/passionados.
What is a Savings Passionista/Passionado?
We’re glad you asked! A Savings “Passionista” or “Passionado” is one who is passionate about and committed to saving, investing and getting their personal finances in order. These women and men are using the R.E.A.L.I.S.T.I.C Budget Method to transform their finances and make a difference for themselves and their families.
1. They develop, stick to and track their R.E.A.L.I.S.T.I.C budget
Our R.E.A.L.I.S.T.I.C Budget Method is part of their game plan for financial success, and they know this. That’s why they pay close attention and adhere to their plan on a monthly basis.
They're able to save a lot more than their peers who are not using this method. Certainly part of their success is using our method; the other part is sheer discipline and diligence.
Arguably this is their most vital habit because they understand that budgets tell them where their money should go, and tracking ensures that their money goes where they intend for it to go.
2. They create a line item in their budgets to make savings mandatory, not optional
Whether physical, mental or emotional, the stress of not having your financial house in order can wreak havoc in many aspects of our lives. That's by our Savings Passionistas and Passionados make savings mandatory. They understand that "if they fail to plan, they plan to fail." They realize that, without savings, they are putting undue pressure and stress on themselves. When economic downturns or unexpected expenses occur, they can take comfort in knowing that they are prepared because saving has been a regular, mandatory action taken each month.
They build and maintain 3-6 months of emergency savings (and grow the pot to accommodate larger emergencies).
3. They look for different and creative ways to save money without feeling deprived
Our Savings Passionistas and Passionados acknowledge that success takes sacrifice. They get creative and find ways to take sacrifices, on a monthly basis, to get ahead. Whether sticking to a list at the grocery store or rounding up on purchases and saving the difference, these individuals understand that the savings possibilities are endless.
Instead of depriving themselves of the things they want, they build it into their budgets. For larger purchases, they divide it up over several months and watch the savings stack up.
4. They prioritize debt repayment by using the R.E.A.L.I.S.T.I.C Budget Method to create a plan for paying off debt
Our Savings Passionistas and Passionados use their R.E.A.L.I.S.T.I.C budget method to help them create a plan for paying off debt. They use this method because they can trust the numbers they are working with each month, and can use their discretionary income/savings (money left over after expenses) to systematically tackle debt.
They often start by paying off smaller debts first. This helps in creating small wins and building the confidence that debt repayment is possible. With smaller debts off their plates, they begin snowballing larger debts.
5. They set personal financial goals and a roadmap for accomplishing them
Our Savings Passionistas and Passionados have a keen understanding of the importance of setting financial goals as a starting place for accomplishing them. Their goals are clear and specific, allowing them to be laser focused on the actions that need to be taken to achieve their goals.
With financial goals in place, they create a roadmap for getting there. One of the ways they get there is through the systematic and monthly use of a R.E.A.L.I.S.T.I.C budget.
6. They know what their time and money are worth
Savings Passionistas and Passionados use their R.E.A.L.I.S.T.I.C budget to see where their money is going, and how to save more of it. When they have more money left over, they put it towards something of value (i.e., investing, spending time with family and friends, making memories vs. more debt, etc.).
7. They are bad asses, investing in and equipping themselves with the tools for success
Whether it’s a book like “Desire, Discipline and Determination”, trying something new, or gaining the skills to be the top candidate for that new job; they focus on improving their biggest asset...themselves. They also go after the things they know they want. They're total bad assess in multiple areas of their lives.