Yesterday, we put the finishing touches on a true budget – one that reflects your
own dreams and your own financial realities, not someone else’s concept of what
you should be spending and saving. Today, we begin the process of seeing what
that budget actually means.

Most people never really achieve their dreams because they never get started.
They keep believing that they’ll save tomorrow for their dreams, but when
tomorrow comes, nothing changes. Because of the budget you just
assembled, you’ve now seen that it is possible to save for those dreams.

Now do it.

Before your next paycheck arrives, open up a savings account at a new
bank. I’d recommend choosing one of the online offerings such as HSBC Direct
(5.05% APY) or ING Direct (4.5% APY, but if you look online a bit you can find a
referral code that will give you a $25 signup bonus). Their rates are stellar and
their customer service is incredible.

Why use a new bank? Having an account at a new bank means that it’s not
already part of your normal routine. Many people open a savings account at the
same bank as their checking account, but whenever they see something they want
at the mall or something, they know they can stop at the ATM and pull money
from that savings account. By getting an account at a new bank, you can simply
never take the ATM card with you – or, better yet, not get an ATM card associated
with that account at all. This drastically reduces any temptation you might have
to spend that money.

Got that new account? Now, when your next check arrives (or now, if you
have some extra cash right now in your checking account), create an
automatic monthly withdrawal from your primary checking into that
account. The amount of this withdrawal should be equal to the sum of the
money you’ve budgeted to spend each month on your goals in the budget we’ve
created this month.

By doing this, you’re doing two things. One, you’re getting started towards
building your dreams. Every single month, your finances are moving towards
those goals you’ve defined for your life. Two, you’re learning how to survive with
a bit less money each month – and soon you’ll see that you won’t miss that
amount at all.

Tomorrow, we’ll take a look at the œextra debts portion of the budget.