Hey again. Okay, so how did your budget creating week go? A little eye opening, right? Well, just a heads up if you haven't had a chance to work on your budget yet. Go back and do that before starting this week's module. Because this week's task depends totally on having your budget in place.

You can always access this module after you've completed the previous one. So don't worry about it. All right. Okay, if you have done your budget, then this week, I'm going to show you how to set up your safety net. sound fun? All right.

Well, basically what this account does is to set you up nicely every month by being able to live on last month's income. So now that your budgets out of the way you know exactly what you need every single month to keep you covered, while putting away your income for next month. sound weird? Okay, I'm gonna show you Setting up your safety net account is the quickest way not only to be well on your way to saving money, but to always be a month ahead. So that that way you can start to stick to your monthly budget and then start to see some savings. All right, so what you need to do first is check with your bank to see what kind of access you have for your account.

So some have access to different savings that you can link. While you might already have a checking account that you like, make sure you have an account that you can add link savings or maybe another checking. If not find a bank that has that ability. So you have two accounts that you can choose from that are linked. For instance, I have a regular checking account with Citibank. On that same account, I have what's called a day to day savings account with my two accounts living under that one umbrella I'm able to transfer money between them with no problem.

I can do that from my phone via an app or my laptop or even at the ATM when I'm in a pinch. Alright, once you've gotten that set up From now on, your main checking account is going to become where your monthly expenses live, while the linked savings account is where all your monthly income is deposited and left untouched until the first of the month. All right, so this is where it starts to be a little fun and kind of all come together. On the first of every month, you're going to transfer the amount of funds that you need to cover your monthly budget and put it in your checking account. So say you figured out $5,000 a month covers you all month, then what you're going to do is you're going to transfer that money from your linked savings into your checking to live off of for the entire month.

Okay? You're gonna leave any leftover money in your savings account to start are building up the money for next month, and to kind of pad it a little bit. So what happens if you have expenses that come up that are outside of your monthly budget? Say you get a flat tire or you have a family emergency or you need to buy a last minute ticket to fly home. I'll cover that a little more in depth next week. But for now, your savings account will act as your cushion for next month's bills plus emergencies.

Okay? Again, so for now, once you get this little engine chugging, you'll have a math a nice chunk of money that's going to help you get through any extraneous expenses and cover you for the month. Don't worry, I've got you covered throughout the month, any money that comes in will from now on be deposited only into the savings account. So think of it kind of like your own little Scrooge McDuck money vault that you just don't touch until the first of the month. Okay. So All your income plus any money that comes in from your various streams will all be placed in here.

Even rebate checks from Ebates or whatever it goes into the savings account. Got it? Good. By the end of the month, your checking account should be pretty close to empty. However, your savings account should be pretty plump, right because all the income went in there. Repeat the same steps on the first of every month transfer what you need to set your monthly expenses off for that next month to your checking, and then leave the rest in your savings.

Okay, and then everything you get paid on that month goes in your savings. So in a short while you'll not only get used to your new little routine, you're going to start to see that there'll be a little surplus over and above what you need to get you buy every month. So that little Scrooge McDuck will start to see some money grow every month and get a little bit easier to amass your money for Your monthly expenses and then hopefully for some savings, some months, your expenses may be less, sometimes you're gonna make more, whatever it is, don't worry, we're gonna get to that next week. But for now, just focus on setting up your safety net, every little dollar that saved adds to that padding. And before you know it, you've built up a great little cushion, while continuing to cover your expenses virtually pain free.

So repeat this every month and watch your savings grow. Alright, so as a quick recap, this week, check into a linking savings account to your checking account and get set up right away. Don't forget to download the worksheet below with the step by step how to as well. So next week is the icing on the cake. So keep up the good work and I will see you soon and you're going to be well on your way to that financial stability you've always wanted and planting those seeds to get your existing money working for you. See you next week.