Savvy Money Habits - Friends Life Care
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Savvy Money Habits
Presented by:
Melissa Tosetti & Kevin Gibbons
Authors of the international bestseller Living the Savvy Life
Money affects everything. It affects where we live, what we eat, how we dress and what we
can do with our free time. What you spend in one area directly impacts what you have left to
spend in other areas of your life.
The Savvy Life focuses on teaching personal finance from a lifestyle perspective, helping you to
build a strong financial foundation WHILE enjoying the journey, by showing you how to be
purposeful with where you spend your time and where you spend your money.
Living a Savvy Life is…
• Knowing where you stand financially on a daily basis so you can make smart money
decisions.
• Purchasing only what you love.
• Being purposeful when it comes to dining out.
• Maintaining a wardrobe rather than randomly buying clothes.
• Planning travel and entertainment.
• Making your home your own personal sanctuary.
The Golden Rule
The Golden Rule of personal finance is to spend less than you make.
516 Cleveland Street, Redwood City, California 94062 / (650) 299-1500
www.TheSavvyLife.com / Info@TheSavvyLife.comThe 9 Savvy Money Habits
1. Pay Yourself First
• If you’re retired, strive to live within your monthly means.
• If you’re still working, how much should you save? Ask your financial advisor.
o If you don’t have a financial advisor consider working toward the goal to: Save
20% and spend the rest with abandon.
▪ This is an ultimate goal achieved over time.
▪ Get there in 1% Increments.
Incremental Plan to Save 5% of a $2,000 Monthly Paycheck in One Year
Total
Month % Increase
Saved
January 1% $20 $20
April 1% $20 $40
July 1% $20 $60
October 1% $20 $80
January 1% $20 $100
2. Track Your Spending
• Are you drowning in currencies? How many different ways do you spend money?
✓ Cash
✓ Checks
✓ Online Bill Pay
✓ Auto Bill Pay
✓ Automatic Renewals
✓ Debit Cards
✓ Credit Cards
✓ PayPal
✓ Venmo
✓ Apple Pay
• However you decide to track your spending, keep it simple.
• Establish the tracking habit:
o Trigger - What trigger will you use to remind you to implement the habit?
o Habit – Track your spending.
o Reward – What reward will you give yourself for executing the habit?
• Do it first thing in the morning before the inclination to procrastinate kicks in.
• If Intimidated:
▪ Just track what you want to change.
▪ Try for just one week.3. Set Financial Goals
A goal without a dream is just a wish.
1. Define your goal:
__________________________________________________________
2. What’s your deadline?
__________________________________________________________
3. How much will it cost? Do your research, don’t guess.
__________________________________________________________
4. How much do you need to save each month?
__________________________________________________________
5. Create a dedicated savings account.
6. Stay motivated.
4. Create a Spending Plan
During the next class in the series we’ll walk you through how to create your own Spending
Plan.
5. Resist Goldfish Syndrome
Goldfish Syndrome is the habit of increasing your cost of living with each pay raise and bonus.
• It Starts Innocently
o Buy your first car
o Buy your first house
o Buy a nicer car
o Buy a bigger house
o Buy a boat
o Buy a motorcycle
o All of these expenses come with a monthly bill.
• Goldfish Syndrome sneaks up in different ways as well.
o One more media subscription
o One more kid’s activity
o Phone upgrade
o All acquired without researching the overall financial impact.6. Implement the 50/50 Rule
Resist Goldfish Syndrome by implementing this rule:
• When you receive pay raises or bonuses:
o Put 50% to your Retirement Account.
o The other 50% you can spend on anything you please…
▪ With one exception:
▪ You cannot spend it on anything that will create a bill!
• Your Ultimate Wealth Building Goal is to:
o Decrease your Cost of Living...
o As your Income increases.
7. Pay Your Bills On Payday
• On Pay Day, also consider:
o Filling your car with gas.
o Buying your groceries.
• What’s left over is yours to spend as you please.
8. Know When to Invest and When to Bargain Shop
• Be mindful and think through every purchase.
o What do you need it for?
o How long do you need it to last?
• Don’t be cheap out of habit. It can cost you.
9. Spend on the Things You Want
• We get distracted from our goals every day!
o Target
o Costco, BJ’s and Sam’s Club
o Amazon – just one click!
• The Power of Habit, Charles Duhigg
o Willpower is like a muscle.
• Keep reminders of your goals around your home and in your wallet.
• Implement the Sunday Morning Shopping Cart Habit.
• Create a Spending Book to list the purchases you’d like to make including:
o Details of upcoming purchases
o Movies, Concerts, Plays
o Restaurants & Activities
o Road TripsThe Power of Purposeful Spending
We need to get back into the process of making conscious spending decisions…
Not from the perspective of being on a budget and scarcity…
But from the perspective of what we choose to spend our money on and bring into our lives
Questions?
Contact us at:
➢ Melissa Tosetti - melissa@thesavvylife.com
➢ Kevin Gibbons - kevin@thesavvylife.com
➢ (650) 299-1500
➢ TheSavvyLife.com
About The Savvy Life
Savvy Money Habits is taught by Melissa Tosetti and Kevin Gibbons, founders of The Savvy Life and
authors of the international bestseller, Living the Savvy Life. In addition to teaching classes on Savvy
Living, Melissa and Kevin work one-on-one with clients across the country helping them build their own
personal Spending Plans and then, show them how to live within their plans.You can also read
