If I have learned anything over the last 20 years .. it has been that taking that step forward and making a commitment to improve our finances & save money was probably the biggest step TO saving.
I love saving money. I love finding NEW ways to put money away and I love to know that I charted a course that I’m still well on the same path to achieving. My husband, on the other hand, is not as in tune with putting money away as I am – but then that’s where the marital balance comes into play.
20 years ago, I was fortunate enough to sit down with a financial planner that helped me setup my Retirement Accounts. That same person stressed an Emergency Fund, Life Insurance, Roth IRA Retirement Accounts, and even College Funds – for the kids I didn’t yet have.
I’m thankful… very thankful. Fast forward to 2016… those same accounts are still going strong.
Over the years, it hasn’t always been easy to keep those accounts going – through children, spouse job loss and then going from 2 incomes down to one.. we managed to hang on and continue. We paid off over $80,000 in student loans that were beyond what our Military Commitment paid for (yes – we BOTH served, taking a Masters program is not a small price, and taking a second masters is even costlier!)
I credit alot to siting down with that ONE person who inspired me. The fortitude I had to avoid buying things I didn’t need. I credit quite a bit to Automatic Withdrawal – when you aren’t required to drive TO the bank, you’re more likely to forget that the automatic withdrawal is coming out.
And then the rest I credit to having the drive to make it happen.
MANY of us know the importance of saving but for whatever reason… we go about saving all wrong. Here are some suggestions that may help you get a better start on committing yourself to start putting away before the end of this year.
Spend with Cash & ONLY Cash
In fact.. you tend to spend less when you are emotionally tied to your money. I find that I spend LESS when I have cash – and I can see how much is left in my cash envelope. Spending with a card usually means you keep swiping. Think about that: If you had $15 left & you went to the grocery store, you would likely spend LESS than $15 – right? If you had a card, you would justify the case to spend more and pull out your plastic.
Budget your monthly paycheck.. and instead of leaving yourself open to no limit, budget a set amount to spend on Groceries, Movies, Clothing & more. In most cases you will find yourself with extra cash at the end of the month that you can reapply back onto your recurring debt (or money you can put in your Emergency Fund).
But it’s not safe to carry cash around?? That’s the biggest excuse people have. I have carried cash for the last 4-5 years and never have I been so irresponsible that I have lost that cash or set my purse somewhere it shouldn’t be. It’s no more unsafe than carrying a card.
Open up a Slush Fund Savings Account
Start tucking away small amounts early. Start with $1 this week. $2 next week. $3 the following week – and run for 52 weeks – over the course of one year you can save $1378- what a great way to start saving for the Holidays, or even for your own children.
I’m a huge saver… and I have several Slush Funds. We start in September and we put away $50 per month through May for our Summer Slush Fun– it creates a fun way to spend the summer with extra cash and allows us to go on a small trip if we can get away for a few weeks.
Use ACH
ACH is a fool proof way to save – most banks allow you to start for $25.00 – that’s a very easy amount to budget each month. You’re more likely to stick with that if you aren’t required to touch the money on the way to the bank.
ACH & Automatic Withdrawal have been incredible for us – for everything from our Emergency Fund to all 4 of our children’s College Funds – since the money doesn’t change hands, we forget that it comes out each month. You’d be surprised at how quickly the numbers add up!
Make Small Changes
Every change, no matter how small, can make a tremendous impact. For many, that daily stop at Starbucks or Sonic can add up to be quite a bit over time – $1 – $2 spent at the drive through can total up to $25 – $30 per month (quite easily!) – try not to be tempted with even the smallest expenses.
Likewise, take time each month to comb through your cell phone bills and bank statements – sometimes that club or trial you signed up for months ago may still be billing you long after your “trial period” is over – that’s money back in your pocket.
Stop Eating Out
Eating out is one of the biggest pitfalls most people have – whether at work or for dinner each evening. I realize that everyone gets tired.. and sometimes it’s just easier to put the meal prep on someone else, but those amounts really do add up quite quickly – $5 one day… $10 the next – is $15 you can put into an Emergency Fund. And that $15 does add up quite fast.
With the proper planning, you can plan ahead for your meals. Invest in a nice set of containers for lunches at work.. and make extra at home each evening to take in every day to work. We base our meals on our CSA every week and we invested in an Instant Pot. Even a $5 Pizza is out of the question for us – not only is it garbage you are putting in yourself, it’s $5 – $10 you could use to make GOOD {Real} Food.
Think about it.
Master Delayed Gratification
In most cases, retailers want you to spend NOW – everything is done with the you need it “NOW” mentality. Of course their goal is to get you to spend – but if you can control yourself by not purchasing at that moment, and waiting anywhere from 24-48 hours to determine how you REALLY feel about that item, in most cases you will find yourself not needing that item (and most items). Stop.. think about the purchase, and give it 24 – 48 hours. I can guarantee you will find yourself with MORE money in your pocket.
Find Extra Income
Use your creative side to find extra ways to make money – take on a second job and deliver pizza… or use your talent to sell items on Etsy or Ebay. Every opportunity to earn extra can be an accelerated payment towards your Emergency Fund – or allow you to accelerate your debt to pay down those credit cards faster. David and I both took up second jobs (although not at the same time) – which helped considerably to help us reach our goal.
Was it hard? Sure it was…
But the pain was definitely minimal compared to the feeling of satisfaction when you can finally make headway to put away money not just in your savings, but also towards your debt, college funds and even your own retirement.
Don’t make enough to save? You do – and you can.. it’s a mindset. Read our last post to help with some ideas.
Guess what? There are SO many more ways.. and we’d love to hear what you have to say – what helps you save?