Save Yourself: The Crasstalk Money Challenge

It’s been over a week into the new year, which means that you’ve likely made some money-related resolutions. Or you recently looked at your bank/student loan/mortgage/credit card  statement and spent the rest of the day weeping and gnashing teeth. Or you want something but need to save up for it.

Whatever the reason, welcome to the Crass Money Challenge, aka Super Squats for finances. Here’s how it works:

  • Choose a goal or goals that involve either paying off a debt or saving for something. For example, your goal could be to increase your annual contributions towards retirement, to pay off a student loan or to save up to buy an apartment.
  • You don’t have to include numbers, meaning you don’t have to specify how much you’re trying to pay off or saving for, etc.
  • There will be (hopefully) monthly check-ins to see how you’re progressing.

This month’s focus is to state a goal and determine how to achieve that goal. Some pointers:

  • Make the goal as specific as possible. For example, “save $20 a month towards my emergency fund until it reaches $1,000; I will get the extra $20 by bringing in lunch every day” is better than “create an emergency fund.” Though you don’t have to include numbers when checking in or stating your goal here, you should have specifics in mind when you decide on it.
  • Be realistic. For example, if you make $20,000 annually, you’re not going to pay off a $100,000 debt in two years. If you like to go out, not leaving the apartment at all for however long it takes to save for a vacation is going to be painful.
  • Automate the payments/savings. It’s easier to contribute towards a goal when you don’t know the money’s there.

To get started, here are my two goals:

  • Pay off the student loan. My goal is to pay off the student loan in the next eight years. I will put in extra funds each month towards the loans as well as a portion of any extra funds (e.g. tax refunds, bonuses, third paychecks).
  • Apartment fund. The goal is to save $50,000 for an apartment. I will save $50 per month. When the loans are paid off, I’ll put in at least the minimum monthly payments for the loan in addition to the $50.

What are your financial goals?

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