Life is unpredictable. Wouldn’t it be nice to have the security of an emergency fund, or maybe finally have enough to take that dream vacation this summer? Here are some tips on how to begin saving money today.
Before you begin, set up an account for your savings. This will stop you the temptation of spending the money you’re trying to save. If you have direct deposit, set an amount to be transferred into this account each time you get paid. Most banks also offer the option of automatic transfer of money between your accounts a few times a month.
When you first start to build your savings fund, start small. You don’t want to overwhelm yourself right out the gate so save what you can without causing yourself anxiety for the rest of the month. It can be just $2 or $3 a day. You’ll be amazed at how fast that will grow over time.
Make your coffee at home instead of going to the coffee shop. Let’s say a cup of coffee costs about $3, and you go at least 5 times a week, that’s $15 you’re spending. Over the course of a year, that can save you up to $780. And that’s only if you’re spending $3 on coffee; many places sell their specialty drinks for $2 or $3 more than that and who can resist the delicious pastries. Your daily spending at a coffee shop is expected to be more than $3 a day. For every cup of coffee you would have bought but decided to make at home instead, add that to your savings and you’ll quickly see your money grow.
Likewise, you can save money by packing your lunch for work instead of buying. Let’s do that math again. If you spend $10 on your lunch every weekday, that’s $50 a week that could be going into your savings account; $2,600 annually.
Another clever way to save money is by canceling your cable. With sites like Netflix and Hulu, you can cut the cord and still keep up with your favorite TV shows. The average cable bill in the US is $103.10, whereas if you sign up for Netflix and Hulu, both about $10/month subscriptions, you’d only be paying 20% of what you’re used to spending with cable.
Following these simple steps alone can help you save over $5,000 a year. It’ll take some discipline at first, but if you’re committed, you’ll find saving money is an easy habit of picking up on.