California man saves with financial plan
Practicing What He Preaches
Herman Vasquez was working at the non-profit Center for Training and Careers, Inc. three years ago when that organization became a partner in the early planning for a Silicon Valley/South Bay Saves campaign. Attending meetings on CTC’s behalf, he took a quick interest in the campaign’s message that anyone can build wealth. “I became interested because I had been wanting to get out of debt,” he said.
What turned interest into action was the invitation to sign up as a motivational speaker for the campaign. “Before, I pretty well balanced my checkbook and paid my bills, and that’s it,” he said. He wasn’t paying off his credit card debts, and he wasn’t setting aside money for the future, he said. Hearing about the Saves campaign and going through the speaker training convinced him he could do better. “So that’s what got me going,” he said.
His first step was to develop a real, written financial plan. “To me, you need a plan in life, and not just up in your head. You need it in writing,” he said.
The first goal he set was to get out of debt, which he hopes to accomplish by next year. After that, he plans to buy a piece of investment property – a duplex or something similar to generate income. In five years, he hopes to own three pieces of property.
He keeps the money he is saving for these investments in a separate savings account that he won’t be tempted to touch for regular living expenses. He also has separate accounts where he is setting aside money for his eventual retirement and to be able to leave something to his children. “I’m not out of debt yet,” he said, “but I’m a lot better saver, I’ll tell you that.”
To keep himself on track, he keeps his financial plan, along with a budget, and all his bills in a binder on his living room coffee table. Every time he writes a check, he sees it. That gives him the discipline to keep to his plan, he said.
One place he found money to save was by cutting back on his shopping. “I love shopping,” he said. “I love clothes.” With a closet full of nice suits and shoes, he decided not to buy anything but necessities for a number of years. He tries to apply a similar discipline to food shopping, by using a list and cutting out the things he doesn’t need. Another area he found to cut back on his expenses was dinners out with friends, which had been a twice weekly event. “I just told them I’m on a strict budget right now,” he said. “That was a biggie for me.”
Saves “just gave me that incentive to do that,” he said. Now, he gives presentations for the Saves campaign once or twice a week. “I love it,” he said. “When I make a presentation, it just solidifies me more. It gives me more discipline, more strength, more energy. I think, ‘Hey, you better practice what you preach.’”
“You need a plan in life, and not just up in your head. You need it in writing,” --Herman Vasquez.