“How do I save money when I don’t have any?”
This is a common question and one that is most often a topic of discussion when I coach clients.
The goal of savings is to first, have $1,000 to cover emergencies. This can be done in a variety of ways, most often by selling stuff you have, picking up odd jobs and creating a budget.
For purposes of this post, we are going to assume that everyone reading has that $1,000.
The problem becomes, then, in the discipline of making savings a PRIORITY in the budget.
As in –
Line Item #1: Giving
Line Item #2: Saving
There are hundreds of reasons WHY savings is important. Here are five tips on HOW to develop the discipline of saving.
Save the Change
Anytime you pay cash (which, should be often if you are using the cash envelope system) save the pennies, nickels, dimes and quarters in a jar. We use a pickle jar and a container I have with a HUGE smiley face on it. You can use any type of container and label it for a certain purpose. For example, it might be the “out to dinner” fund.
Save a Dollar
Similar to Tip #1 except challenge yourself to save a dollar. Every time you spend cash and receive change, save a dollar. You could easily save $5 a week using this method.
Save Five Dollars
This might be a bit more challenging. Same concept as Tip #1 and #2. When you receive your change and get a $5 bill, save that. Put it in an envelops with a specific task ( i.e Vacation Fund) so you are not tempted to use that money.
Many banks have something called a “Christmas Fund” where a predesignated amount of money is drafted from your check into savings each payday. This is a GREAT way to save money because its automatic. It may take some adjusting, but over time you may not even miss the money AND you will have created an automatic discipline to savings.
Out of Sight, Out of Mind.
Put your savings account*somewhere OTHER than your normal bank. You can open a FREE account at another bank or, if you are saving cash, it somewhere you won’t see it everyday.
*This account would be IN ADDITION TO your Emergency Fund. You want to make sure you have easy access to the Emergency Fund.
There is not, really, any one method that works great for all people. The most important thing here is that you create the discipline to save. It has to become as disciplined as brushing your teeth.
It has to be a priority.
What are some ways that you save money? Please share in the comments below!
Do you know someone who needs some help developing the discipline to save?
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Do YOU need help making savings a priority?
Email me at MelissatheCoach@gmail.com to set up your FREE initial consultation!