Saving money may seem impossible for someone who earns a relatively low wage or is in a difficult financial situation. But it’s not uncommon for even those who make a good amount of money to find themselves thinking that they don’t have enough money.
Taking a fresh look at your habits and realizing how you spend your money can reevaluate what you do. For example, to buy something worthwhile or to travel. You need some serious cash. But where do you get it? Below are helpful tips on how to save money.
#1 52-Week Money Challenge
The 52-Week Money envelope challenge on Fitmymoney.com is a recent most popular personal finance trend. It’s pretty simple: at the end of the first week, you set aside just $5, and then each week, you increase the amount by $5 over what you set aside the previous week. So in the second week, you get $5+5, in the third week, you get $10+5, and in the fourth week, you get $15+5.
With this regular gradual increase, by the last week, you will have put away $260, and your total savings will be $6,890.
For some people, that’s very little money, but it’s already a financially severe safety cushion for others. That’s why the $5 step is tentative. You can increase or decrease it based on your financial situation and goals.
#2 Save Money Daily
Imagine that this spending is as mandatory as eating or going to the bathroom. Choose a comfortable amount of money that you can part with daily without much financial loss. For example, if you set aside $1 each day, you’ll have $365 in savings at the end of the year. That’s a nice cash gift for your hard work, don’t you agree?
Another interesting challenge is to increase the amount you put into your piggy bank each day. Imagine that the point of your game is to outbid your bid, like in an auction. But by the end of the year, such a game will turn out large sums of money that not everyone can handle. However, the idea itself is pretty creative.
If you don’t want to devote time to the piggy bank every day, you can set aside a certain amount of money each week. For example, if you set yourself a weekly goal of $20, you will have $1040 in savings at the end of the year. Remember that the amount should be comfortable and commensurate with their financial means for each person.
#3 Declare Yourself a Shopaholic
A person’s penchant for shopping can help you save money. Now, each time you’re going to buy a particular thing, think about whether you need it. Try not to make impulse purchases. Give yourself time to think about everything. Then, put the money you saved in a piggy bank to control your desire and not buy unnecessary items. This method is quite effective. You will see how much finances could have just gone to waste at the end of the year.
Another excellent option for people who suffer from shopaholism is to assign a specific tax on purchases. For example, make yourself a rule that you will put 10% of your shopping money into a piggy bank. Of course, now you will have to add that percentage to the total amount you will spend.
#4 Saving Up Every Eight Weeks
Most people get paid twice a month. That’s why it’s convenient to send it into savings right after you receive your advance and paycheck. However, it’s better to do it every week. For example, you can start with $100. The following week, you set aside $200. In the third week, you can set aside $300 and then $400. After that, go in reverse order. At the end of the challenge, you will have at least $1,000 in your account.
And if you think it isn’t the big sum, remember that Statista shows 69% of Americans have less than $1000 savings.
#5 The Weather Challenge
The weather helps many people to save money. Every Wednesday, look at the thermometer and set aside a dollar amount equivalent to the temperature. In the case of sub-zero temperatures, you can ignore that the number is below zero. Depending on your income, you can add a zero or two to the number on the thermometer. It is needed to get a nice round-sum bonus due to the challenge.
#6 The Daily Challenge
It’s as simple as that: you set aside a certain amount each day, and you will have 31 times that amount saved by the end of the month. So, for example, if you set aside $10 a day, in 31 days, you would have $310. But you can also increase the amount of your income.
This challenge is all good, except for its predictability. Nothing changes throughout the month, and it isn’t fascinating. So you can diversify it. For example, suppose you start with $31 on the first day and finish with $1 on the last day.
If you do not think about the savings every day, the challenge can be transformed into a weekly one. The principle is the same, but you have to save every seven days.
#7 STOP Spending
This method is a little farther from the challenges and closer to the everyday savings. However, there is also an element of adventurism. Try it for a few days without spending any money at all, and then put what you didn’t pay into an account. For example, you can extend the period to a week but include a list of necessary expenses: food, travel, medicine, etc. You can also leave out business lunches, cabs from work to home, and clothes. This method will suit those who spend extra money on unnecessary things.
#8 Try Not to Eat Out
Prepare healthy food for yourself and take it with you for lunch to save money. Food in a café or restaurant is significantly different in price and is not always satisfying in quality.
We hope these simple recommendations will help you save money for various purposes. We wish you success, patience, and determination!