According to a report by the Federal Reserve, 40% of Americans cannot cover a $400 emergency expense. This statistic is alarming and speaks to a larger issue at hand – many of us are not good at saving. Thankfully, there are some easy ways to begin saving that can help you get started on the right foot. Keep reading for 6 easy ways to begin saving today and contribute to your financial fast.
1. Figure Out Your Goals
What do you want to save for? A rainy day fund, a new car, a down payment on a house? Once you have figured out your goals, you can start to make a plan on how much you need to save and over what period of time. This will help you stay motivated and on track as you work towards your savings goals.
2. Start small
You don’t have to save a lot of money all at once. In fact, it might be easier for you to start small and increase your savings over time. A good place to start is $50 per month or 10% of your paycheck, whichever is less. Once you have gotten into the habit of saving this amount each month, you can gradually increase it as you get more comfortable with saving.
3. Automate Your Savings
One of the best ways to make sure that you actually save is to automate your savings account so that a fixed amount of money is transferred from your checking account into your savings account each month. This way, you never even see the money and it becomes easier to part with.
4. Cut Out Unnecessary Expenses
Take a close look at your budget and see where you can cut out unnecessary expenses like eating out, coffee runs, or subscriptions that you don’t use often enough to justify their cost. This is critical for your financial fast – cut out unnecessary expenses to contribute to your savings and find financial freedom. By cutting out these expenses, you can free up more money each month to put towards your savings goals.
5. Find Cheaper Alternatives
There are often cheaper alternatives available for the things that we use on a daily basis, we just need to take the time to find them. For example, instead of buying pre-packaged meals or going out to eat, try cooking at home using cheaper ingredients from the grocery store. You’d be surprised how much money you can save by making small changes like this in your everyday life.
6. Tryout the 30-Day Rule
Whenever you feel the urge to buy something that isn’t a necessity, wait 30 days before making the purchase. This will give you time to really think about whether or not you need or want the item enough to justify spending your hard-earned money on it. More often than not, after 30 days have passed, you will find that you no longer feel the same urge to make the purchase and will have saved yourself some money in the process!
Saving money can be difficult but it is not impossible! By following these tips, YOU can become better at saving and working towards financial stability for yourself and your family!