Make Progress: Savings Edition

Savings secured a spot in our three principles of money + life balance because of its great financial, emotional, and behavioral benefits.

Savings secured a spot in our three principles of money + life balance because of its great financial, emotional, and behavioral benefits. At The Beans, we talk about savings in terms of Essential Savings. Essential Savings is that cushion so we can easily bounce back when something ‘unexpected’ happens, that’s the financial. Essential Savings also strengthens our financial decision-making, that is the behavioral. Research has shown that with just a few hundred dollars in savings, we experience less stress and can make stronger financial decisions. Now that we agree that savings is super, the question is, “How do we start and continue to build our Essential Savings? We dive into two popular strategies within The Beans community.

Increase Income

The Beans member MaQueena juggles a career in education and her active children. Currently, her fixed expenses top out at 83% leaving her stressed and emotionally depleted. “I take it in… I just don’t want to be bothered by anybody.” MaQueena wants to start saving so she can experience less financial stress and enjoy more breathing room each month. MaQueena recently completed her degree [ Congrats!!!] which means she is perfectly positioned to advocate for a salary increase. Working with The Beans team she practiced the ask and plans to go in with confidence and secure that wage bump. A small raise would take MaQueena from 83% fixed expenses to 73% meaning regular monthly savings contributions and better money + life balance.

In a similar situation? Here are a few things to keep in mind when advocating for a raise:

  1. Schedule a Meeting: Request a meeting with your supervisor choosing a time when both parties are free from distractions or interruptions. 
  2. Prepare Your Case: Familiarize yourself with company policies. Is there a specific time of year when raises are considered? Is there a standard increase amount for when you complete certain academic and/or training requirements? Spell out how your new skills will benefit the company and show how you can apply what you’ve learned to improve the organization. 
  3. Practice: Role-play with a friend or family member. Be prepared to receive and respond to objections in a professional manner. 

If you want to talk this through, or practice your ask with peers, sign up for a community session. 

Take Advantage of Automation

The simplest and most effective way to build Essential Savings is through automation.  savings means that when a paycheck comes in a certain amount is automatically moved to savings, just like how many bills are automatically deducted each month, . Automation removes friction, we don’t have to “do” anything. When we set up automation our current self is committing to our future self. That pre commitment, is hard to break, putting us on a path to financial progress. On average our users save 5X more using Essential Savings. The majority went from saving $50 to $250 per month! 

Savings play a crucial role in our money + life balance. Experiment, try, or use any of these strategies to start or build to a fully funded Essential Savings. The benefits will be felt immediately. Happy saving!