Most Americans find money saving as an actual chore, and one they don’t want to follow through with everyday. In fact a recent GoBankingRates survey, 69% of adults admitted to having less than $1,000 of savings in the bank and even worse, 34% have no savings at all.
The problem with not having adequate savings is that you never know when an emergency might strike. You could lose your job, fall ill, or find yourself up against a major home repair that simply can’t be postponed — and if you don’t have the cash available, you could end up in serious debt with an equally serious black mark on your credit history. If you don’t yet have $1,000 to your name, here are a few ways to work toward that goal.
Money Saving Tip 1. Create a budget
A household budget can open the door to savings by helping you identify your key expenses and get a better sense of where your money is going. But for some reason, nearly 60% of U.S. adults don’t follow a budget. If you’re serious about saving money, you’ll need to create a road map of your various costs so you can see where there might be some fat to trim. Not sure where to start? You can consult this guide for ways to go about the process.
Money Saving Tip 2. Cut back on small luxuries
While you may dread the idea of giving up your beloved morning coffee or brown-bagging your lunch on a regular basis, if you’re willing to make a few smaller sacrifices, you can accumulate $1,000 rather quickly without having to compromise on the big stuff. Imagine that every time you walk to work instead of springing for bus fare, you shave $2 off your commute. Throw in the $2 you’ll save by making your own cup of joe and the $6 you can easily save by packing your own sandwich, and you’re looking at an extra $12 a day. If you do this twice a week, you’ll have that $1,000 at your disposal well within a year’s time.
Money Saving Tip 3. Reduce one major expense
Sometimes it’s easier to eliminate one large expense than to give up the daily indulgences you’ve come to enjoy. But if you’re willing to forgo that new TV or take a staycation instead of going away, you can save $1,000 in one fell swoop.
Money Saving Tip 4. Pocket your raise or bonus
Depending on your company’s fiscal year, your raise may not yet have kicked in. Similarly, if you work on commission or are eligible for bonuses, you may be looking at some additional income in the not-so-distant future. If you’re about to get your hands on some extra cash, your best bet is to stick it right in your savings account.
You can set up an automatic transfer with your bank so that the additional money that would normally appear in your paycheck never actually shows up, but rather, gets filtered seamlessly into savings. This will help you resist the urge to spend that money, and you won’t miss it because you won’t even know it’s there.
Money Saving Tip 5. Find a side hustle
Not everyone has the opportunity to get a raise or pick up extra hours at work. If your primary job doesn’t offer a chance to snag some extra cash, your next best bet is to pursue income opportunities on your own. You might, for example, look into babysitting, dog walking, or teaching an instrument you’ve been playing for years. Or you might moonlight as a sales associate for a local business with a known busy season.
You can even look into performing your regular job duties on a part-time, consultant basis on nights and weekends, provided your company doesn’t have a policy forbidding such activity. You may need to get a bit creative, but if you’re willing to put in the time, it’s a surefire way to build up your savings.
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