Besides the basic survival needs of life, money is also a major necessity. We need money to buy food, clothes, and to secure a roof over our heads. We also need money to do things that we’ve always wanted to do, such as traveling or buying something we always wanted. I just want to let you know that it is possible to always have money to your name. All you have to do is SAVE.
The misconception that people have with the term save is that they think saving money means putting a large amount of money to the side. That can be helpful but that is NOT TRUE. Saving does not mean there is a required amount. Saving means putting any amount of money to the side, even if it’s a penny.
Here are five ways to save:
Open multiple savings accounts
Since life is so unpredictable and adventurous, one savings account isn’t enough. You should definitely have a savings account for emergencies and life’s unfortunate circumstances, but what about the times when you want to enjoy life? This is where the other savings accounts come in. You may want to create a travel savings or maybe a leisure savings. Whatever it is, MAKE ONE. The best thing about a savings account is the fact that they accumulate interest. Even though the interest may be $0.10 a month, it is still money that YOU didn’t have to put in.
Add small amounts of money to your savings accounts
Many people open savings accounts and only deposit large amounts of money into it periodically. Yes, that can be a good thing to do, but what about the times when it’s a day before payday and you have an extra $10 sitting in your checking account or pocket that you really don’t need? Take that $10 and disperse it amongst your savings accounts. Even if you have an extra $3, still disperse it. Money adds up overtime.
This is one of the easiest things to do because coins can be found anywhere. The pennies you walk over, the dimes, nickels, and quarters that have been sitting in your car’s cupholder for months can turn into dollars over time. Get a piggy bank or create a coin storage to save them in a way that you will increase your funding overtime. There are also many CoinStar Kiosks that you can use to turn your coins into dollar bills. Banks also turn your coins into dollar bills. You can even use them to increase your savings accounts.
Set a limit that your savings accounts can’t go below
This is very important, especially for your emergency funds. When it comes to your emergency funds, it should only be used in EMERGENCY circumstances. My definition of emergency and your definition may differ, however make sure you stick to your definition when considering emergencies. It should be very rare that you would have to use all the money on your emergency funding immediately (not saying that this can’t happen). When you set a limit for your emergency funding, it will keep it from decreasing drastically. If you have to use your emergency funds, try using only the excess funding over the limit. For example, if your limit is $500 but you have $650, try using only $150. Be sure to replace the money as time go by.
Create A Budget For Yourself
There may be times in which you want to go out and not save. This is fine! Just set a budget for yourself. You know your financial goals as well as your finances. Use that as a guide to budget your spending when you go out. Set an amount that you wish to not go over when spending.
Let’s have a Mental Stimulation Conversation! What are some other ways that we can save money? Comment Below.