Saving for Frugal February. The month of financial rest explained
(CBS DETROIT) - New month, new challenge.
Instead of bypassing alcohol as many Americans did with Dry January, it's time to ditch dining out and usher in Frugal February, a time dedicated to spending as little as possible on non-essentials while saving as much as you can.
"Use this month to track the money that's coming in," said Julie Hollinshead, president of Hollinshead Advisory Services LLC, a financial and investment consultancy. "Take five or 10 minutes every day to jot down what your expenses are."
According to Hollinshead, a part-time professor of finance at the Mike Ilitch School of Business, this is a practice that could lead to a big payoff.
"Frugal February gives us the opportunity to reset our financial habits," she said. "[Because] to build wealth, it's not so much how much money you make, but rather how much you save."
This is something Kenny Williams knows to be true.
"Take finances as seriously as you take everything else," Williams said.
Williams works as a communications director for a nonprofit and as an entertainment journalist and media consultant.
"I've focused on having multiple streams of income for a while now," Williams said. "I want to always have safety nets, as many as possible."
Williams says after moving to New York for an unpaid internship in graduate school, he learned a valuable lesson.
"It was at that moment that I was like, I need to get it together because this does not feel well. I was eating French fries and rice," he said.
Years later, as a working adult, Williams was laid off twice, forcing him to renew his focus on his finances while tightening his budget and monetizing his skills.
"I don't believe in having fun if you can't afford to," he said.
Williams has never heard the term "Frugal February" until now, but unbeknownst to him, he's been practicing its principles, and accessing his finances at the top of the year is something he's done for years.
"The first half of this year, or the first few months at least, I'm going to be more financially responsible because I want to have fun this summer," he said.
