Saving money isn’t easy and with so many expenses in life, it can almost seem impossible at times. But even saving a little adds up over time and can be a leverage for you in the future. Everyone should have at least $1,000 in their savings. If you don’t, don’t worry. By saving just 10% of your paychecks – you’ll have your savings built up in no time.
Let’s say you get paid $800 every two weeks – all you have to do is put away $80 of it. That can seem difficult for some people, but if you dedicate yourself to doing it, you’ll be surprised how much you can end up saving in a short amount of time.
Make it automatic
Almost all banks will allow for automatic transfers. Set up your account to take 10% or whatever 10% of your paycheck would be, and have it put in a separate savings account. That way, you don’t even have to think about it, and you won’t have time to talk yourself out of it.
Find a purpose for your savings
Maybe you’re looking to build up your emergency fund, or maybe you have planned a big trip out of the country for next year. Whatever the purpose of your 10% savings, make it worth while. If you don’t have a reason you believe in to save money, it will be easy to compromise when the time comes to actually do it. When you have a separate account for your savings, it will be easier to take out the lump sum all at one time. Dedicate yourself to that trip to the Bahamas!
Put cash away
It’s old school, but it works for a reason. Online accounts have made it very easy to transfer money in a matter of seconds, so if you’re easily tempted by all that money sitting in your account, take out 10% cash every month and put it in an envelope. Even better, put it in a lock box. There’s something about spending physical money that hits the regret button a little harder. So, the more tactics you use to keep yourself from spending the money, the easier it will be to not spend it.
Cut out expenses where you can
It’s a lot easier to save 10% of your money by just not going out so often. Let’s go back to the idea that you may $800 every two weeks (that’s $80 you put away for that paycheck). Let’s say you got out 7 days and spend at least $10… that’s $70 you could have saved.
While going out is a nice treat, doing it on the regular will deplete your finances and take any chance of saving. Cut back on your lattes and see how much easier it is to save that 10%.
Dedicate yourself to it
What you need most is a little willpower. Saving isn’t easy and 10% of your income can seem like a lot. However, if you dedicate yourself to your savings and make it as easy as possible on yourself, you will be surprised how simple saving money can truly be. Yes, it will take ignoring your human nature, and maybe staying in while everyone is throwing money away at the bar. But at least you’ll be going to the Bahamas, right?