6 Small Saving Habits That Help When Every Dollar Counts
Life is expensive.
From groceries to childcare, car payments to health insurance, many families are feeling the weight of rising prices in every part of life. It can feel like hard work just to stay afloat. In fact, about one third of Americans say they are living paycheck to paycheck just to cover everyday expenses.
When money feels tight, saving can feel out of reach. But small steps really can make a difference over time! Even setting aside a little here and there can help prepare for the future, cover a surprise expense, or work toward an important goal.
Here are six simple ways to start saving money, no matter where you’re starting.
1. Use a savings account instead of keeping cash at home
Don’t just tuck that extra cash under a mattress! Consider opening a free savings account at a local bank. Some banks also offer “round-up” programs that move the extra cents from purchases into your savings account. Some banks allow purchases from your checking account to “round up”, stashing those extra pennies into a savings account. Those pennies really add up and you can be bulking up your savings without even thinking about it! You can also have money from your paycheck allocated directly to your savings account.
2. Pay yourself first
You work hard for your paycheck. Try allocating or setting aside a small portion of each paycheck into your savings account. Some financial experts talk about saving 10-20% of your income, but many people start much smaller. Even $5, $10, or $20 set aside regularly is a meaningful step and will add up over time. The important thing is building the habit of savings. No amount is too small as it all adds up over time!
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A budget can feel restrictive at first, but the truth is, it's allowing you more control of your finances, instead of letting them control you.
3. Keep a record of where you spend your money
If you can’t seem to understand where your money is going every month, writing things down can help. Take a little time to list your regular monthly expenses and the things you spend money on daily & weekly. Seeing it on paper often reveals opportunities where money could be redirected toward savings or other expenses. This doesn’t mean cutting out every small joy or penny pitching, but making a few small adjustments can help build a little cushion for emergencies.
4. Pick a goal that matters to you
Saving can be simple when you know what you’re working toward. Maybe you want to build a small emergency fund. Maybe you’re saving for a car repair, paying down a medical bill, or to buy someone a present. Sometimes the goal isn’t huge, but can help create a little breathing room when life throws something unexpected your way. Writing down your goal and watching your savings grow toward it can be surprisingly motivating!
5. Phone A Friend
Saving money can feel difficult, especially when finances are stressful. Having a trusted friend, family member, or neighbor to keep you encouraged while celebrating your progress along the way can help to keep you on track and accountable with your savings goal. Many people are facing the same challenges, and walking through it together can make the journey feel easier. We offer a Faith & Finance class that has helped many neighbors get a handle on money management, decrease (and sometimes eliminate!) expenses and save money to buy a home! [Click Here] for more information.
6. Realize you are in control.
A budget can feel restrictive at first, but the truth is, it’s allowing you more control of your finances, instead of letting them control you. Put yourself in the driver’s seat with a map of where you want to go, and remember that every step forward is exactly that…a step in the right direction.
Saving money doesn’t have to start big to make a difference. What matters most is taking the first step and building the habit one small choice at a time!