Save whatever you can.
Although it may seem like saving money is impossible, like every penny we earn is spent, either for food, gas or rent, days before the next paycheck, we need to try and save a little whenever we can. And when we put even small amounts away, they can add up.
Saving money is important for many reasons. First and foremost, we need to have some money put away for emergencies. Whether it is to cover our expenses after a job loss, an unplanned fix for our house or our car, or any other emergency, having some money in savings will help us get through these tough times. Financial experts recommend having a savings of three months worth of expenses as a baseline for emergencies.
Savings can also help us enjoy our daily lives as well. As we make purchases or go on trips, knowing that those items were paid for with cash instead of going in to more debt by putting them on a credit card, can make them even more enjoyable.
How to save your hard-earned money:
Here are a few ways to help you save what you can:
- Pay yourself first. Put savings first on your list of financial obligations, even if it is just $10 each paycheck.
- Save your daily change.
- Know where your money is going and adjust your spending to eliminate the unnecessary purchases and apply that extra cast to your savings account.
- Set savings goals that are achievable – $50 per month to start then work your way up.
Open a savings account with your bank and set up an automatic weekly transfer to that account from your savings account. It can be a small amount, even just $5 that you probably won’t even miss but will add up.