3 Small But Effective Ways to Save Money (when you don’t earn a lot)
Want to know the best ways to save money? Here’s exactly 4 insane ways to save money this week…
If saving money is a real struggle, you’re definitely not alone. I’m so glad you’ve realized that you have to start saving and get your finances in order.
It just simply starts with recognizing and acknowledging that you need to save and keep more of your hard-earned money. And if 2020 and the pandemic has taught you anything is that you can never have enough savings.
You’re about to learn all about creative ways to save money (you might not have thought of.)
This post is all about effective ways to save money.
Save Money (Tip #1)
Save in percentages.
This tip will change your savings dramatically. You will have more money saved in your account than ever before.
First, look at your whole paycheck. Then, decide what percentage of your paycheck you want to save. (Before you start paying bills or spending any money from your paycheck).
Simply start by saving at least 10% of your paycheck. For example, if you get paid $1,000, save $100.
Imagine saving $100 consistently with every paycheck, soon you’ll have $1,000 (then $2,000, then $5,000 and more) in your savings account. (Without feeling like you’re sacrificing a lot).
Start prioritizing your savings. By paying yourself first, you will hit your number #1 financial goal in no time.
It is possible to save money while still in debt. Saving in percentages will help you start funding your emergency fund (while at the same time pay for your bills and your debt).
Some paychecks you might be able to increase your saving’s percentage to 15% or 20%, but at a minimum you should always aim to save 10%. Every. Single. Paycheck.
Even when you don’t earn a lot, you can still save in percentages. If 10% of you paycheck it’s a lot, you can save just 5% out of every payceck.
Here’s the thing though, the amount you are saving it’s not that important. What’s most important is the action of saving consistently. That’s the key to making your savings grow.
It’s like when you first start working out, you feel very uncomfortable, but you do it anyway because you know it will benefit you. The same goes with your finances, you have to streamline your finances and make yourself save, (even when you don’t earn a lot).
Before you spend your paycheck decide what percentage you want to start saving and watch your savings grow and grow like never before.
Save Money (Tip #2)
Save like a squirrel.
Squirrels are always busy hunting for nuts. Yet, they don’t eat them all, they hide some for later.
You too, can save like a squirrel! By not spending all your paycheck. Learn to stash some money away in your house. Maybe you can start transferring some money into a savings account (to prevent you from spending it all.)
Be like a squirrel and always hide money.
That way you can break the bad habit of reaching for a credit card whenever you’re faced with an emergency or a bill that’s larger than your paycheck.
There are many ways to save money but if you change your mindset and save like a squirrel (making savings a priority in your life) you won’t fall back into debt.
Oh, and FYI, it’s not that difficult. You can start by saving a small amount (even if it’s just $10) from every paycheck.
Remember, it’s not about the actual amount you save, it’s all about building the habit of saving like a squirrel that will transform your finances overtime.
Save Money (Tip #3)
Save money in a different savings account (away from your checking account.)
If you are anything like me and have your savings account with your checking account all in the same bank, you won’t ever be able to actually save money.
Here’s why…
Because every time you log into your bank account and see your checking account dwindle, you immediately transfer money out of your savings, back into your checking account and spend it.
Do this instead…
Separate your checking account from your savings account. Hide money from yourself. Out of sight, out of mind. Use an online high-yield savings account at a different bank that you don’t see or use often.
That way, you’ll be able watch your money grow. (Because you’re actually not touching it.)
Since it’s out of sight, you’re no longer depending on it to pay bills. Or feel tempted to spend it. You just solely rely on the actual amount on your checking account.
This is by far the best ways to save money because it forces you to stick to your budget, since it will take about 4 days for your money to transfer back into your checking account.
In other words, you no longer have quick access to your saved money, so you will control your spending.
You can open an online high yield savings account, which will earn you more interest than your regular savings account at your local bank.
There is no limit on how many savings account you can open and most of them are free. Look into opening a high yield savings account to start your $1,000 emergency fund.
Then, you can then open another high yield savings account for longer saving goals such as a house downpayment or a new car.
Separating your savings account from your checking account is one of the best ways to save money.
In Conclusion…
You’ve learned to save in percentages, save like a squirrel, and save money in a different savings account. These money tips, can help you lay a solid foundation for building your savings in a way that can be sustainable.
Because, like it or not, you ARE the CEO of your money. Regardless of wether you are still in debt or not, YOU can still save money. YOU are the one who has to make savings a priority, and steer the ship. No one else, can do that for you. You have the power and knowledge to save, so do it!
This post was all about the best ways to save money.
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