It sometimes takes a life-changing event to make you re-evaluate financial priorities. In the case of Patricia Fike, that event was her divorce.

“When I went down to one income I knew I’d have to fend for myself,” she said. Now, after years of learning best practices and listening to people with “financial savvy,” Pat is close to meeting her goals – retiring within five years, maintaining, or even improving, her standard of living, and being able to afford to travel. 

Pat started off modestly, saving amounts as small as $10 “that I thought I wouldn’t miss.” From there, Pat found more ways to save. Whenever she got a raise or bonus, she’d spend part of the money but put away the majority. When she quit smoking, she began to save the money she used to spend on cigarettes.

Pat also saves by automatic transfer from her checking to savings account after each pay period. She does her regular bill-paying online, and considers the transfer of money into her savings as just another regular bill – “like paying myself.” Once the money goes into savings, she taps it only in an “extreme emergency.”

Pat also investigated savings opportunities offered by her employer. Again, she started small, saving one percent of her pay in workplace 401(k) program. But when her tax preparer explained that Pat was leaving money on the table by not taking advantage of the three percent match that the company offered, she upped her contribution.

Setting and meeting savings goals helped motivate her, she said. “When I first started saving, a friend told me I needed $100,000 to retire – which of course these days isn’t nearly enough.” But having a goal helped her want to save. “I would get my statement and think ‘Wow! I have that much already. It gave me an incentive to reach my goal quickly.” She is now working on reaching the half million mark.

About nine years ago, Pat joined a women’s investment group, which meets regularly to decide on purchases and analyze investment choices. It was through the investment group that Pat first heard about Central Iowa Saves and signed up as a Saver, hoping to continue her pattern of learning and wanting to show support for the idea of sound financial management.

Pat emphasizes that saving doesn’t mean giving up fun. “I try not to deprive myself,” she said. “My friends would actually call me impulsive.” In fact, every other year, Pat goes on a cruise, spreading the cost over several months and saving her quarters for spending money.

The key to successful savings, she said, is making a commitment. “You’ve got to commit. When people say, “I’m barely making it, I can’t save,” that’s when you should go back and look at where you can cut down. Maybe you drink pop, maybe you smoke, maybe you go to Starbucks. Just cut one out.”