Lets start off today with something simple. How to start saving your money:
How to start saving money is a common question… second to where to begin saving my money. Or vise versa who really cares… I just want to learn to save is what your thinking right?
There are plenty of places to save… Let’s take a look:
Piggy bank – They come in all shapes, sizes, and colors but when you put your change in one…you typically forget about it! This is what I like is that it may be difficult to put the money in but when you do it’s more or less forgotten about within the hour. When I say piggy bank I mean any type of at home place like a kids piggy bank with no way in except the secret rubber stopper on the bottom that’s not really a secret anymore (big thanks to the internet on that one…), maybe a mattress, a fire proof locking safe for larger bundles of cash, behind the fridge, and in your couch cushions.
Normal bank accounts – This is simply just a bank account that you can put your money to save it. It’ll require some discipline however because there is nothing requiring you to keep the money in for a designated period of time…Typically. and there may also be some sort of monthly fee depending on the bank. I actually have my money divided into a few different accounts some savings and some checking. My goal is to increase each account by a certain amount each week to cover bills and monthly finances.
Regular Savings Account – Start young on this one! Savings accounts aren’t known to help you accumulate money in interest over the years. But it is still a great habit to get into. Put your money in a specific place and leave it there unless for emergencies.
There are many other places to save your money depending on where you live. For example if you’re in the UK and ISA or individual Savings account with a fixed rate may be good, but in the USA a Roth IRA is something similar but has a few more restrictions. We recommend speaking with a professional about the best option for you. But lets move on to some good habits and tips to help you reach your savings goals.
Tips for saving money:
- I like to create goals. You can create monetary goals (such as saving up 10k) or even material goals (like saving for a car or house). The best way to reach this goal and help staying committed is by creating a deadline. Otherwise your goal is flexible and you can begin to make excuses for not putting in that 5$ today. It helps to start small and work your way up from there. For example maybe you just want to get the habit rolling…start by saving 5$ a day (Monetary goal), everyday for a month (Deadline), so you can take the girlfriend on a nice date at the end of the month to celebrate (Results will make you feel better about achieving your goal!) It even helps to put an X through each day of the calendar to visually see your success and create a challenge.
- Start saving your loose change! Each night I take all the loose change out of my pocket and put it right into the old piggy bank I mentioned earlier. This could also be a vacation or monthly night out fund. Whatever keeps you motivated make sure you’re putting something toward it each month. I also like to try and make sure I put a minimum of 2$ of change in the fund each time I empty out the pockets at night. If you don’t have the change then try to keep the streak going by adding a couple bucks.
- Pay yourself! This goes for any entrepreneur who doesn’t get a pay check each month, or even those blue collar guys out there working for their beer money each week. Make it a point to pay yourself, your bank account, and your savings funds. Split it up however you want but I recommend a minimum of 10% in my savings funds each time I get paid. Then I pay myself 10-15% and the rest goes to bills and debts. The number may change but it’s a good habit to get into. Pick a percent and roll with it for a month or two then you can get an idea of what it should really be.
They key to saving money is ACTUALLY DOING IT! You absolutely have to do it if you want to start developing good habits! You can talk and talk and talk about it and then 10 years later be wishing you saved that 1$ a day and had an extra 3500 dollars.
I always say… There is nothing better than being around a man/ woman who makes it a point to keep their word. Be it to me, someone else, or especially themselves.
START SAVING NOW!