Savings goals

[treesmith]

So I started a new "plan" in 2014, putting $20 EVERY day I worked into an envelope. I started it a few weeks into the year, adding a little in "estimation" of what I'd already worked. My goal was to work 200 days, thereby having $4000 in savings. I finished out right on the money, doing a little job on the 31st. I am going to do the same this year, still adding $20/day. I might try to up the ante next year.

Does anyone else have "goals" for savings?

 

[Tucker943]

Dude, you met your mark for 2014. Raise that bar. Clearly you have the motivation and discipline. I think you shoul consider going to 22-23 bucks a day this year. Think about it, somewhere in 2015, you'll see a price for something rise on you. Might as well keep up with it on your personal level.

 

[treesmith]

Oh I saved quite a bit more than that....that was just a goal to stick back toward retirement. And yes, I have considered upping it to $25/day in a year or so. $20 is far easier to manage though, without having to make "change" every day or so. Just twenties and hundreds in the envelope.

I also have an envelope for the Boxer, Gehl and Carlton, each getting $20/day EVERY day the equipment works. Even if it's only taking the Boxer or Gehl for 15 minutes of work, it gets $20. The Gehl's envelope hit over $3000 for 2014. I started those envelopes to help cover breakdowns/maintenance/etc, but I normally have enough on hand to cover routine stuff, and so haven't had to dip into any of those yet.

I am encouraging my son-in-law to stick back $5/day every day we work. He's only 23 and has a new baby as well as a house payment, so can't afford $20/day currently. I've always been pretty good at living within my means, and so saving has never been hard for me...assuming I was making something TO save!

 

[Tucker943]

I don't work off of enough cash to set up a system similar to yours. You have a good thing going.

 

[woodworkingboy]

Good advice for sure for your son-in-law. Starting at his young age, sticking to his plan until retirement could yield hundreds of grand. Pretty amazing how it works, little by little. I can't recall what the average savings amounts to for people reaching retirement age in the US, but it is surprisingly little.

 

[treesmith]

Chris, what do you mean "work off of cash"? I get paid by check primarily, but I deposit a portion and get a portion in cash for groceries and whatnot. I use cash for most everything I handle in person.

I've tried to teach savings to my kids as well. My oldest worked at a nursing home for two years...first several months as a volunteer, then shifted to part-time (paid). She then shifted to full-time, where she stayed for a year before she decided it wasn't her cup of tea. During that year, she got paid every two weeks. I encouraged her to give me $200 out of each check ($100/week) to stick back for her. It's amazing to see how fast that adds up, especially to young folk.

My middle daughter (19) is working part-time at a friend's deer processing outfit. Last week she worked four days, putting in around 36 hours. She had me put $300 in her envelope out of that four days' worth of pay.

 

[sotc]

One advantage to sole prop. I like it

 

[FireFighterZero]

I have not been able to save much cash, aside from Christmas money and band money. We are in full on expansion mode, but we do increase our net worth every year.

I would say that this is a great thing, especially that you have taught your kids.

I watch some welding videos on the web, and one project was a piggy bank welded out of pipe. Included with the piggy bank was a copy of the book "The Richest Man in Babylon". I guess it was about work and saving money. I might pick it up.

 

[Tucker943]

I mean I don't receive cash often. The checks are written to my business. It doesn't make sense for me to deposit them, take cash out to save, then save the cash and alot it towards business costs that I can't write off at that point. Your system is awesome and I think you have a great thing going. For me to mirror that same system, id have to do it all through a series of different business accounts using electronic transfers. Which is not out of the question. I got the impression, and I might be wrong, that you use cash itself for each savings.

 

[Tucker943]

My intent was not to insult you or imply you work solely on cash. Not at all. I actually admire how you do things and so diligently save money.

 

[cory]

Awesome thread, Tsmith. The way you do it will be more or less no pain, all gain. You won't miss the 20 bucks a day but that big ole lump of savings that builds up will be epic.

 

[flushcut]

I have not been able to save much cash, aside from Christmas money and band money. We are in full on expansion mode, but we do increase our net worth every year.

I would say that this is a great thing, especially that you have taught your kids.

I watch some welding videos on the web, and one project was a piggy bank welded out of pipe. Included with the piggy bank was a copy of the book "The Richest Man in Babylon". I guess it was about work and saving money. I might pick it up.

Welding tips and tricks? That guy is a good welder and I have learned a few things from him.

 

[Chris E]

All I do is save, I don't have a system in so far as exact amounts to be saved - I spend what I need to and the rest is saved. The only problem seems to be that there is a never ending cycle of equipment purchases to be made. My original plan was to get a small yet profitable set up going and be able to then use any excess cash for lifestyle and travel . Now its apparent that a small set is a little inefficient and there is a push to go bigger. I don't want to be forever saving for that next piece of kit endlessly though....

 

[Tucker943]

So now you must ask yourself if you are chasing the dragon with no personal return on your investment? OR, is growing the business with no end in sight actually a reward in itself for you?

The answer varies from person to person. For me personally, id rather see the business reward me with quality of life instead of spending my whole career dumping my quality of life money into a business so it can make me more money that I won't use to enjoy my life.

 

[cory]

Post of the year.

 

[treesmith]

Awesome thread, Tsmith. The way you do it will be more or less no pain, all gain. You won't miss the 20 bucks a day but that big ole lump of savings that builds up will be epic.

Thanks, Cory. That was my idea to start with...I would never miss it. And I haven't. Same with the equipment "accounts". They get "paid" for going to work, and I hold it against a rainy day.

 

[FireFighterZero]

Welding tips and tricks? That guy is a good welder and I have learned a few things from him.

Yep. I subscribe to his weekly welding videos.

 

[Merle Nelson]

Included with the piggy bank was a copy of the book "The Richest Man in Babylon". I guess it was about work and saving money. I might pick it up.

Enjoyable, simple read in story form. Anyone wanting to amass some $$$ and looking for a little more inspiration/support would do well to read it.

 

[Burnham]

This is the way to get where you all want to be when you're my age. Excellent.

 

[HolmenTree]

Work more cash only jobs as some tree outfits I know do.
Then you can better decide how much you can put in that envelope every day.

I had a few interesting tree work customers that I did work for over the years who paid me cash only and that's how they ran their restaurants too.....cash only .
One Chinese family for generations starting with the great grandparents back in the 1930s operated that way. Today some of their grand kids are heart surgeons in Los Angeles.
Hard hard workers and know how to handle and control their money.

 

[Tucker943]

Too much cash work is tough in the States. The cash is nice, but it gets you nowhere when you need a loan from the bank for the business or some property. It's a double edge sword. I hate it.

 

[stig]

Same here.
You can't really use it much in your everyday life.
Good for travelling abroad and I've managed to hide a lot in the reconstruction of my house that has been ongoing for the last 20 years, by buying materials with cash. When I eventually someday sell the house or die in it, that money will be laundered white .

 

[SuperK]

Mr Larry Burkett right? My dad did this for me when I was a kid. I would run the ball for him at soccer games that he coached and then get paid but never saw the money lol.

A year before he passed away he gave it all back to me and my brothers in 20 different envelopes lol, still haven't spent the money lol. Its a great way to save and spend hard to discipline yourself sometimes though. I need to get on the ball!! Thanks for the encouragement!

 

[Al Smith]

As it works out since I'm 66 years old I can draw social security and still work with no penalty .Believe it or not SS pays all my monthly bills with some left over .Also keep in mind it took me a life time to get in this position .

Raising a family ,paying for a house etc. the average person including myself at the time savings were hard to do .