Most people try to start some sort of savings plan because we all know that sometimes cars break down and need a mechanic, and things like our fridge suddenly stop working, and we are in need of an appliance repair. But how do you start saving when you don’t have a lot to put away?
There isn’t an easy answer, but there is a range of small steps you can take to help you start a small savings plan.
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This might be one of the scariest things to deal with, but once the debt is all paid off, it can free up a lot of money. And that money can go into your savings. If you are only paying off the interest, you might just find that you feel like you aren’t paying off anything at all. Make a list of everything that you need to pay off, and then start looking at which ones you can tackle more easily.
You don’t need to save huge chunks of cash to start a small fund. Instead, you can say smaller amounts on a weekly basis. Even a few dollars a week will add up over the year. Automated savings applications can help, they calculate what you can safely save, or can round up on what you do spend and put a small amount away every week.
If your savings and primary income are in the same account, it might be time to look at opening a bank account that is designed for your savings. This way, you won’t accidentally spend money that you had wanted to save. If you do this, make sure that your separate account is easy to access in case of an emergency.
Have a goal in mind. Is your money for a house deposit? Or perhaps you want to save for the vacation of a lifetime. It might be as simple as you want to have enough money set aside ‘just in case.’ Whatever your reason for saving up, write a financial goal down.
Try not to put pressure on yourself to put money in your savings and paying off everything as fast as possible. Money is often a significant source of stress; take it slow and think of it as something you want to do and need to do. But don’t beat yourself up when you need to dip into the savings or don’t hit your monthly goals. Ease the pressure, enjoy the savings.
One of the ways you are less likely to miss any money, no matter how small the amount you are saving is to make sure that you set it aside as soon as you are paid. If you wait until later in the month, you might find that it disappears on things you might not need because it’s ‘spare.’
It is a good idea to write everything down on a monthly basis, this will give you the figures of your savings, and give you the encouragement you need to keep going.