How is your health condition? Not talking about your physical health, but your financial situation. For most of us, how much money we earn determines our “financial feeling”. But your income is just a part of your financial situation. How much of your income can you actually save?
I guess, not much. You say your income is low and you have bills to pay. The rent is outrageously high, and grocery expenses are shockingly expensive. Who can save money in such circumstances?
My answer is: you can. Yes, you can save money!
Come on, take action.
Do you want to save $1000, $3000, $5000, or even more? I will help you achieve your goals. Every day, my mission is to encourage you to spend less and save more in various ways. I know you can do it! So, let’s get started.
You may say you want to save a million dollars, which is commendable, but let’s face reality: it’s not easy. To achieve your goal, you need to make it specific, realistic, and measurable, like “I want to transfer $25 to my savings account every Friday for the next five months, ultimately saving up to $500.” That’s much better.
Most experts agree that you need an emergency savings fund of at least three months’ worth of income (your net take-home pay). Does that seem impossible to you? For now, why not set a target equivalent to one paycheck? Almost everyone can come up with that amount with enough determination. Once you achieve that, try saving two paychecks, then four. Soon enough, you’ll reach that three-month goal.
Visualize saving money by hanging up a picture of what you are saving for, such as an item or activity. If you simply want to save money in the bank, create a calendar and mark down all your deposits. (Writing down these numbers will surprise you with how great it feels.)
If you’re committed to this plan, the most important thing is: pay yourself first. Before paying bills, buying groceries, gas, or clothes for the kids, deposit some money into your savings account first. Even if the amount saved is less than desired sometimes, save it anyway. As long as you’re moving in the right direction, even small steps count.
Don’t just stash cash under your mattress! Open a savings account, let it grow securely, where you can see it increasing. But most importantly, it’s safe for you! As you increase your regular deposits, you’ll see it grow.
Here are five things you can start doing today to save money:
1. Check every closet, wardrobe, and drawer. If there are items you rarely use, sell them on eBay or at a flea market.
2. If you’re serious about savings, say goodbye to small indulgences (fancy coffee, cigarettes, candy bars, bottled water). These expenses add up; saving $5 a day amounts to $1825 a year.
3. I nearly paid full price for a phone charger – $100. But feeling uncomfortable about spending that much, I went to eBay. Before long, I found a regular charger and a car charger for under $10 (including shipping). Need a one-time use item? Borrow from a friend or neighbor (and encourage them to do the same).
4. You use a credit card because it’s convenient. So, stop using it. Spending shouldn’t be that easy. Control those impulse buys. This can save you a lot of money for saving.
5. Next time you get a raise (or a bonus), save at least half. Suppose a raise increases your monthly take-home pay by $200. If you save half and continue for 10 years, the money you didn’t touch (because you never saw it) will grow to $12,000, not including any interest you may earn.
The essence of saving money is this: initially, it might feel tough (similar to dieting, where all you can think about is what you can’t have). In the worst years of my life, when I was indulging recklessly and racking up debts, I can sincerely tell you, we did not have enough to save.
But once I started saving (even just a few dollars at first), something magical happened: I began to feel a new sense of self-worth, dignity, and peace. The more I saved, the better I felt. The better I felt, the more I wanted to do it over and over again. And the same will happen to you.
When you see your savings balance grow, be prepared for a surprise: saving money can become addictive. Try it. Save money. See if it becomes a habit.