Breaking Down your Barriers to
Savings
February 11th, 2015
Erica Abbott
Financial Planning for Women Assistant
Website: www.usu.edu/fpw
Searchable blog:
http://fpwusu.blogspot.com/
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Be Sure to Sign Attendance
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Drawing for free financial consultation
with Dr. Jean Lown
And personal finance books
Attend at least 2 of the 3 FPW meetings
in January – March
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Steps to Breaking Down Barriers

Confront yourself!
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Analyze: Where are you now?

Build confidence and identify something
worth saving for

Things to consider when saving

Breaking Down Barriers
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Bad Money Scripts

Money Scripts is a mindset that we create
that can negatively effect the way we see
things
*Based on the article, “Top 10 Money Scripts that MessUp People’s Financial Lives. Published May 2009.
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Are you NOT saving because
•
More $ will make things better
• You understand the importance of savings, but
don’t think you can save until you make more $
• Switch that mindset!
• It’s not what you earn, it’s what you keep!
• Even low income households can find a way to
save money
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Are you NOT saving because
•
Money is Bad
• Rich = greedy, insensitive, unloving, etc.
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The point is that money is neither good nor
bad in and of itself; it is our own relationship
to it that will determine whether it turns out
to be a good thing or a bad thing.
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Are you NOT saving because
• I don’t deserve $
• Giving too much to others (children, parents,
spouse?)
• Neglecting to save some for YOUR future
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Are you NOT saving because
I deserve to spend money
 Work hard, play hard!

• It’s okay to enjoy your money
• DON’T go beyond your price range
• Do save enough to enjoy your future
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Are you NOT saving because

There will always be enough $
 Grew up rich and/or married into $
 $ just appears when you need it

What happens when the money well runs
dry?
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Are you NOT saving because

Money is unimportant
 $ does NOT equal happiness, fulfillment,
etc.
 Ignoring $ or making bad financial
decisions doesn’t add to happiness,
fulfillment either.
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
Not saving could make things worse
 Arguing about $ is the #1 cause for
divorce in America
-Family Relations journal, “Examining the
Relationship Between Financial Issues
and Divorce.”
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Are you NOT saving because

If you are good, the Universe will provide
 Regardless of how “good you are” your
financial life will NOT take care of itself

The better you are with $ the more
opportunities you’ll have to help others
 You must first take the time to better
yourself before you can help others
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Are you NOT saving because

Money will give meaning
 “You can never get enough of what you
don’t need to make you happy.”
 Keeping up with Joneses isn’t fun!
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
Money is just a tool– when used
correctly it can build something!
 Security
 Financial peace
 Allow you to help others
 Life aspirations
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Are you saving too much?

There will never be enough $
 Just like there’s an obesity epidemic in
America there’s also an overspending
problem.
 Some American’s are on the other side
of the spectrum though (underweight
and over-saved!)
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Are you saving too much?

Make sure you aren’t sacrificing other
important things to save or earn money
 Health
 Valuable time with Family & Friends
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Are you saving too much?
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Reflection Sheet
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Reflection Sheet
1 = very low
10 = you’re feeling great about where you are
◦
4 blank spaces to fill in and rate with other
financial areas (see sides for ideas)
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Reflection Sheet
• *You could be a 10 in a certain area even
though you don’t have all the $ you need
if
 You have a plan
 You’re feeling confident and on track to
reach that particular goal
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Reflection Sheet
Share with your neighbor an are that you
are doing well in
 If you want, share what you’ve done to
get there

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Reflection Sheet
• Pick out an area you’d like to work on
• Does NOT have to be the one that
you rated the lowest
• # 1 rule for goal setting = it has to be
relevant to you!
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Reflection Sheet
• Think– what would it take to move you
from a “5” to a “6” on the scale
• You’ve saved for your dream
vacation, retirement, kids’ college
fund, etc.
• Now envision yourself there. What
is it like?
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Consider the need
When you think about savings,
think about why you’re doing it?
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Consider the need
Emergency fund savings:
“If we knew for sure that in the next
month we would have a flat tire, wouldn't
we make sure to have a spare in the trunk?
In similar manner, since we know that
sooner or later we will all experience
unexpected financial emergencies, the best
preparation is setting money aside for that
purpose”
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Consider the timing

Don’t wait until the end of the month to
save
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Consider the Amount
•
•
Have a dollar amount attached to your
goal.
If the dollar amount feels overwhelming,
break it down into a more obtainable
goal.
• Build up from there
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Consider the Method
•
Best method is to do it directly from your
check
• Out of sight = out of mind!
• Kinda like taxes
• We don’t think about how much we pay in month
to month- then surprised when we file.
• Elections held in November instead of April 
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Consider the Location
Where you put your $ matters
 More than just the rate of return you get
on your account– think about
accessibility.
 Easy access could mean easy spending
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Reflection Sheet
• What steps would you need to take to
reach your goal?
• Now– what barriers do you see that
might hinder you?
• What are some ways that you can
overcome those barriers?
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Breaking Down Barriers
 It’s HARD to save today
 Solution = DON’T!
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Hard to save Today
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Hard to save Today

Have a piece of chocolate in front of you
◦ It smells delicious
◦ It looks super tempting
◦ It’s hard to say no, now! So go ahead and eat
it
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Hard to save Today

But… what if I tell you I’ll bring you the
chocolate at the next FPW?
◦ Easier to make sacrifices (say no!) when it’s
not right in front of you
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Hard to save Today
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Moral of the story:
Set up a delayed Automatic savings plan.
• Set it up to start taking money from
your account next month (or 3 months
from now) and put it towards your
savings goals
• The trick is to set it up today!
• Doesn’t work if you don’t set it up
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Where to Find $ to Save
• Tax returns
• 8 out of 10 people get a refund
• Average refund is $2800!
• Even low income tax payers get an average
of $2000 back
• It’s NOT too late to put $ into retirement
for the 2014 tax year
•Have until April 15th, 2015 to do so.
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See the $ you saved
• $2000 invested in 2015 from your tax return
is $4318 *10 years from now!
• $9322 in 20 years
• > $20,000 in 30 years!
• *Assumes an 8% rate of return
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Barrier: High Expenses
• Mortgage, kids, cars, debts, etc! All take a
toll on your budget
• Pay yourself first
• Review expenses
•Consider cutting back, rather than
cutting out
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Where to Find $ to Save
• Drop of $1.30 a gallon of gas since
November
• Could save an average family $1000 in
fuel over the course of a year
• Don’t wait to save– go ahead and invest
that $ now!
• See FPW past presentations for great
mutual funds
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Barrier: High Expenses
• Paying off consumer debt offers a high
rate of return!
• CNN Money says: Average credit card
debt is nearly $16k in 2012!
• Average rate was > 15%!
• Better return to pay off debt than
invest the $
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Barrier: Low Income
“The myth associated with high-income
earners saving more is false. Truth:
financial problems don’t discriminate.
They affect all ages and social classes.
Studies have shown that modest income
earners who saved diligently have an
extremely high net worth.”
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Barrier: Lack of Time
As America Saves states, "One of the
most important things you can learn in
life is how to save money. It’s the first
step to getting where you want to
be….once you start it gets easier and
easier."
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Upcoming March 4 (early)
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March 4 (early due to USU spring break):
Financial Planning Basics
• Now that you are savings, it’s time to start
planning
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Check the searchable FPW blog for lots
more ideas on Saving
• http://fpwusu.blogspot.com/
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