Having a savings account should not be looked at as a luxury, it is a NEED to make sure you are financially stable. However just because you do not make a TON of money doesn’t mean you do not need a savings account or that you can not afford to have one. Even if you think you can not afford to have a savings account today I am going to show you how EVERYONE can afford to have a savings account, if you are not sure why you need one make sure you read this post on why you need a savings account and you will want to read 5 Tips for putting more money in your Savings account and this post How to stop living above your means is also filled with some great tips too!
How EVERYONE can afford to have a savings account
1. Start Small- If you do not have a large budget to work with start small, even if it is only $1 a paycheck, or $1 a day any amount going into your savings account is a good thing.
2- Get a FREE Savings account.
3- Cut out the extras (or just 1 a month). You do not have to cut out every extra you have but think about it, you spend $4 a day on coffee on your way to work, you can make it at home for less then $1 a cup and have $3 more still in your pocket. Times that by 20 days (for a 5 day work week) and you now have $60 a month that you can put in your savings account.
4- Budget. Budgeting the money that you have coming into the house and knowing where it is going will make it so you know how much you can put into your savings account. You don’t want to over stretch your budget by putting to much into savings that then leaves you reaching for a credit card to pay your bills. Make sure you also check out this list of things you are forgetting to put in your budget to make sure you have everything covered in your budget.
5- Make it a family goal. You do not have to tell your kids the exact financials of the house but showing them and teaching them that you are putting money in to savings instead of spending it will help them later in life. But it also needs to be the whole family on board with savings. If you are needing to get the kids to understand why you are cutting things out like the weekly trip to the donut shop it is a great time to talk to your kids about smart money choices
6- Instead of planning and going on a big vacation, use that money to put in a Savings account and then do a smaller vacation or even better a staycation. Find a place that is local that you have never checked out before and find a few that are in 30-45 minute driving distance and then come home each night. You will still have a ton of family fun, explore new places but you will save a ton by coming home each night instead of paying for a hotel.
7- Take all your change and put it away. Yes I know this sounds silly but when you are at the store and you get change back take that change and put it in a jar, or a can. We have an old school glass water bottle that whenever we have change we put it in there. I am waiting for it to be full and then I am going to lug it (well actually it will take Tom and I lugging it) but off to the bank and cash it in and put it in the savings account. Most people don’t pay with a pile full of change so putting the change in to your savings account can add up quickly.
8- Set a schedule of when you are going to make your deposit. If you get in a routine about putting money into your savings account it will become habit and then it will become “just something you do”. One of my favorite ways to get on a schedule is the 52 Week Money Challenge! you will easily Save $1,378 in a Year!
9- Be realistic. Do not think you are going to put 1,000 in savings every month if you can not afford to do that.
10- Set a specific goal. Know what you want your final to be and work to it even if it is little by litter.
11- Once you put the money in your savings account forget that it is there. This is not money you want to rely on this is a savings for things you are saving for like a goal purchase or retirement.
12- Sell items you do not need that you have and put that money into savings. You did not have that money before hand so it was never budgeted and can do you good in your savings account.
13- If you get money for a gift put it in the savings account, trust me I know it is not the “fun” thing to do but if you are working on building your savings then it is the smart thing to do. If you don’t want to put it all in the savings account then just put a portion of it.
Looking for other money saving tips Check out these other great posts