Do you have $500 or $1000 in savings? If your answer is no, then you are not alone. A recent article reported 6 in 10 Americans do not have $500 in their savings to cover an unexpected expense. Too much expenses is usually the number one reason people say they are not able to save. Another reason is they are not earning enough to save. The third reason is they have too much debt to put anything away for a rainy day. The last reason is they haven’t gotten around to saving. Say What!? Saving should be a priority for everyone. Let’s figure out how we can make that happen.
The first step is to erase the thinking we need a lot of money to save money. If we consider our daily spending, we have money to spare we are not considering. Another adjustment is to think before spending. As a society, our love for convenience is burning holes in our pockets. The morning coffee, late afternoon coffee and vending machines are cutting into our savings rate. Other culprits are eating out and meeting up for drinks. Too many people allow their lifestyles to control the amount of money they can put away. Let’s work on cutting back.
Some of us can go cold turkey, while others will need to phase into these modifications. Are you buying granola bars from the vending machine? Instead buy a box on your next trip to the grocery story then grab one each morning. How often are you eating out and meeting up for drinks? If you were meeting up four times a week, cut it to twice a week. Slowly, you will see less debits or charges on your cards. If you are among the fading breed of people who still use cash, you’ll find yourself making less trips to the ATM. So now what?
The money you would have spent should be put into an account. I know what you are thinking, it’s not that much to put into an account. I agree that first deposit will seem nominal but let’s see how the balance looks in several months. The common mistake we all make is saying we need a large amount to start saving. Do we lose 10 pounds after our first workout routine? No. We lose weight by maintaining a regimen. Our road to savings should be no different! Challenge yourself today and see what spending you can shed then watch your money grow. Good luck!