You’ve heard the statistic before, the majority of adults do not have enough money saved to pay for a $1,000 emergency. Sadly, these types of financial emergencies happen more often than we think and not being prepared can leave you in dire financial straits. It’s for this reason that you absolutely have to have money set aside for a rainy day so here are seven foolproof ways of doing just that!
Method #1: Understand you can save with as little as $1
One of the most common excuses that people give for not saving money is that they don’t have enough. However, you don’t save money because you have a lot of money, you save money to have a lot money. If you understand this, then you will know that you can save with as little as $1.
So right now, you see, there is really no excuse not to save money. Even if you save just a dollar a day, this is one more dollar that you would have had otherwise. For most people, the hardest part of saving money is starting! Think about it, how many times have you said to yourself “I am going to save more money really soon”. You keep placing your savings efforts into the future which makes it all the more challenging to start. The good thing is, you can start saving with as little as $1 and I’m going to share with you how to right now.
It doesn’t matter how much money you make, if you have bad spending habits, you’re never going to save enough money. Therefore, the key to saving more money is by developing good money habits and you can start by saving $1 every day. The goal of saving $1 is to help you develop the habit of saving money and eventually become comfortable saving more. You can start with an online saving account or simply go by the method of a cookie jar. You can even have more than one cookie jar and label them according to the different purposes that you want to use the money for. You can also make use of an envelope, a small box, or any other thing that you are comfortable with. The great thing is that you can start saving $1 after and then scale up these efforts from there. So what are you waiting for? Come on and give it a try today!
Method #2: Set up automated saving deductions
Another sure method to save more money is to set up automated savings. One of the goals that we all have every year is to save more money but we soon realize that it is easier said than done. How many times have you made a new year’s resolution only to find out that by the middle of the year you’re no longer working towards it?
Hence, if you want to save more money, you have to make the process automatic. There are many benefits of setting up automated savings. First, it removes the temptation of spending money. When you remove savings first, you plan with what you have left. You may find it difficult to keep some money aside when you have a long list of needs but with automation, you resist the temptation of spending money.
Also, automation helps you to keep money out of sight. Have you ever found money in jackets or pants you haven’t worn in a long time? It feels like you just discovered a secret treasure, right? That’s because when money is out of sight, you don’t think of spending it. Automating your savings helps you keep money out of sight and it may also create another eureka! moment when you see how much you have saved.
Furthermore, automation allows you to focus on other important parts of your life. There’s no need to continually ask yourself if you’re going to be able to save money this month because the money will already have been taken from your paycheck. This means you can spend more time focusing on your other commitments like your business, family or friends to name a few.
Now that you know some of the benefits of automated savings, you’re going to see some ways to automatically save more money. First, you can talk to your bank to automatically deposit a certain percentage of your income from your checking account into your savings account. You can also use some online banks like Chime. Some of them may help you save money automatically every time you purchase something by rounding up the amount to the nearest dollar. For example, if you spend $23.25 on an item, it rounds it up to $24 and helps you save $0.75.
Method #3: Identify your most valuable expenses and cut out the rest
Did you know that the main culprit of people’s failure to save money is their inability to delineate their wants and their needs? Well, to save more money, you need to identify your most valuable expenses and cut out the rest.
According to research, about 64% of adults regret spending money on short-term pleasures and that includes food, clothing, gadgets, and vacations. What this means is that most people wish they had managed their finances better and saved more money. If this sounds like you then you have to identify your most valuable expenses right now and cut out the rest.
Moreover, most people know where their money is coming from but what they don’t know is where their money is going. Tracking where you spend your money every month can reveal to you the mistakes that you are making and how to correct them. You can start by writing down every purchase you make or by keeping the receipts of everything that you buy.
Method #4: Take pride in your frugality
Another method you can use to save more money is to take pride in your frugality. People may try to make you feel cheap because you are frugal but you have to understand that what people say about you doesn’t really matter.
Once you’ve decided to live frugally, how people perceive you shouldn’t bother you. Being frugal means that you are always on the lookout for practical ways to save more money. That may include doing away with things that you do not need or creating a budget and sticking to it. By thinking of the advantages of spending your money wisely, you will be more comfortable embracing this money saving lifestyle.
To sum it up, being frugal helps you spend up until the point where spending more money will not make you any happier. You realize that you don’t need material things to be happy because you know that they are not the true source of happiness. You may decide not to go for a vacation and still be happy staying at home because you know that the location is not the reason for your happiness. Above all, your frugality will help you save more money and invest which is ultimately what we’re striving for!
Method #5: Find a savings partner to stay accountable
There is a saying that two are better than one and it makes perfect sense when it comes to saving money. If you’ve been telling yourself that you’re going to save more money but you never do, it’s time you find a savings partner that will help you stay accountable. A savings partner will help you meet your long-term goals by encouraging you to save money, manage how you spend your money, and monitor your progress.
Finding a savings partner doesn’t have to be a difficult task. Your savings partner can be your friend, your siblings, your parents, or a colleague. What’s important is that they have to be someone that you are comfortable sharing your financial struggles and progress with. Also, a good savings partner should be someone with similar financial goals and not someone who has bad money habits. You don’t want to have a savings partner who spends all their money on the latest gadgets and other things that they don’t need. You can imagine what that outcome could look like.
Therefore, it’s important that you find someone who will encourage you to save more money. For instance, your savings partner should be someone who can stop you from spending money on things that are not necessary. They should also be someone who you can meet regularly so you two can track your progress and ensure you’re trending in the right direction.
Method #6: Leverage savings challenges
We all like challenges and that’s why it’s easier to save more money by leveraging savings challenges. A savings challenge involves keeping money aside by testing your ability to follow certain rules. For example, a savings challenge may involve keeping aside a certain amount of money every week. The rule here is that for you to participate in the challenge, you must save money every week. That sounds simple, right?
Now, let’s talk about some common saving challenges and how you can leverage them to save more money. The first savings challenge that you can try is the 365-days challenge. The rule of this challenge is that you start by saving 5 cents on the first day of the year and add 5 cents to the amount that you would save every day. For example, on January 1st, you will have to save 5 cents, and on January 2nd, you will have to save 10 cents. If you follow this challenge to the end, you would have saved a total of $3,339 on the 365th day.
Another savings challenge is the spare change challenge. This challenge involves saving all the change you receive from any item you purchase. If you use cash often, you can save the change in a cookie jar until you deposit it in your savings account to avoid spending temptations. You can also make use of online banks just as I’ve explained earlier on.
Another interesting savings challenge is the 52 weeks challenge. The rule of this challenge is similar to the 365 days challenge the only difference is that you only save weekly and not daily starting with $1 the first week and $52 the last week. You could save up to $1,378 at the end of the year with this challenge.
Finally, one way to keep this challenge interesting is to create a reward system for yourself. For instance, you could eat out or give yourself a treat each time you finish a challenge. Just make sure that this reward doesn’t consume too much of that hard earned money you’ve just finished saving!
Method #7: Earn more money
Probably the most common method that people suggest when asked how to save more money is to simply cut your spending. However, you will soon realize that no matter how much you try to cut your spending, there is a limit to how much you can cut. That’s why it is important to understand that once you’ve cut out everything you can, you must attack your saving efforts by earning more money. Making more money means that you will have extra money to save at the end of the month and pay your debts.
Now, there are several ways to make more money and one of the most ignored ways is by changing jobs. By simply looking for another job with better pay, you may be able to save more money at the end of the month. Another way to make more money is by asking your employer for a raise. Most of the time, people who ask for a raise eventually get it because it is cheaper for an employer to increase your salary than employing a new person.
Other ways of saving more money include starting a freelance career, creating a blog or a YouTube channel, becoming a tutor, selling something online or offline, and many more. Saving more money is important and it will help you achieve your financial goals. Just as I just explained, you can use any of these methods to start saving more money right now!