Many people get puzzled that saving $25 a day can actually make a difference a few years down the road. Let me tell you that, the secret to becoming wealthy is saving, like the Chinese always say “A journey of 1,000 miles starts with a single step.” So don’t lose hope because you cannot see yourself achieving your goals because of your low contributions. Begin with baby steps and before you know it, you’ll be running like you’re in a marathon. The following article by Janey Smith gives five tips on how to achieve financial freedom with just your savings.
With money in the bank comes wealth and financial security. That means that to get there, you have to figure out how to save money – which most of us haven’t done for years as we’ve run up credit card and loan debt! Now, we’re struggling to pay off our credit cards, car loans and leases, and our overpriced homes. What everyone needs right now are some really great strategies to save money.
When you think about it, the typical ways to save money haven’t changed. Back in the 1700’s, Benjamin Franklin first wrote “A penny saved is a penny earned”, and today, hundreds of years later, it’s still true! In order to save money, all you need to do is live within your means, meaning spend less than you make. Then, put the difference into a saving account or other safe investment. It can be easier than you might think, if you simply break it into baby steps. Below are tips on how to save money which will get you fast cash in the bank. These tips are meant to be short so you can use them right away and see quick cash results!
- The most important step is SPEND LESS. By spending more than you earn, you will never ever get ahead financially! So, just start by cutting your spending, and then put it into your savings account. You might cut spending just by not buying things you don’t need, like manicure, takeout coffee, dining out, buying junk food at the store, expensive vacations, brand new cars, personal electronics – you get the picture.
- Open A High Interest Savings Account. Today interest rates are fairly low, however something is better than nothing. There are many online savings accounts into which you can transfer money with a click of your mouse. Or, go to your local neighborhood bank and open an account there, so you can make frequent deposits in person! When you save in Step 1, you should put the savings right into this new savings account. Ideally, you should go open this account immediately, today! Keep this account separate from your checking, and put all your extra money from savings here. is ONLY for your saving strategies funds. This account is set up so you can have a place to accumulate cash so you don’t spend it.
- Start Paying Yourself First. At every pay-day, set something aside into your new savings account FIRST. Even if you don’t think you have enough to pay all your bills, at least use direct deposit to put $10, $25, or $50 aside. As soon as your savings account is open, set this up at work, with direct deposit into your new savings account from #2 above.
- Earn Extra Money. Any extra amount of cash you make, put it toward your savings. Look for a part-time job, or find some freelancing online, or offer your services in your local community. Or, hold a garage sale, sell some things you don’t need on Ebay or Craig’s List or Kajiji, and bank the proceeds. There is part-time or contract work available online if you can write, or know how to build a Web page, or even can handle administrative duties; check out sites like GetAFreelancer.com or DoMyStuff.com. This kind of work can be done at home. The idea is, every little bit helps.
- Finally, Do It All Together! Doing the above four steps means you are able to put cash aside from your paycheck, you are cutting your household budget by a certain amount (aim for at least 10%), and putting the extra in the bank. You can also set out to earn a couple hundred extra every month with side work. Before you know it, and within the year, you could have thousands saved! That’s money you can use to save for emergencies like job loss, or learn to invest it prudently and start earning your way to wealth.
It is possible to save money, and these tips on how to save money show that little by little, you can build wealth in your life. One step at a time, you’ll be on your way to financial security.