When it comes to saving money, it can be a challenge. But part of building a solid future is creating a nest egg and being able to afford the things you need. If you’ve been lacking on setting money aside, it’s not too late.
How would you like to set aside a grand in just 30 days? It isn’t out of reach for most people, honestly – and even if you can’t save that much in a month right now, you still have options. Let’s get you that comfy nest egg.
Take a Close Look at Your Income and Budget
In order to set aside a $1000 in a month, you must closely examine the money coming into your household and where it’s going.
After you pay your household expenses including groceries, utilities and mortgage, is there anything left over? What are those funds being used for?
If you are overspending (let’s be honest, we all do it) on things like dining out or clothes shopping, you’ll really have to get on track to save money.
Try the 50/30/20 budget plan. 50% goes to basic needs, 30% for wants and 20% for savings. Try to cut back in the 30% want category and use those funds towards your $1000 savings. This can help you reach your goal faster.
Force Yourself to Build Your Savings
When you get your paycheck, it’s hard to just take out a specific amount and set it aside without spending. If this is the case with you, or you tend to “just take out a little” until you have nothing left, you might need to go a little tough love on yourself:
Force the money into an automatic savings fund. Online savings accounts like Chime work well for this because there are no hidden fees. They also help you track your savings with transaction alerts.
You can also ask your bank to open a savings account for you and add restrictions. For example, removing debit card access or needing to speak to a teller before you can withdraw. Don’t be afraid to ask – it benefits them when you save, too!
Another option would be to open up a 401k directly through your employer. You can designate how much you want taken out (e.g., $1000 a month). From there, funds are applied to an interest bearing account or investment such as target date funds or stocks and bonds. This lets your money grow more cash over time.
Choose Ways to Save
When looking at your monthly bills, do the monthly debits equal out more than the credits? If so, you’re going to need to dig deep on ways to save $1000.
Start with some of the extras you already have, like cable television and monthly subscription boxes. Be realistic and firm whenever you can.
Consider eliminating cable to start with. It’s hideously expensive and you can always get great programing on apps like Netflix or Hulu.
Get a lot of monthly magazine subscriptions or beauty boxes? Those can quickly add up. Eliminating recurring monthly subscriptions and things you could do without can help you reach that $1,000 goal.
Can’t Afford to Save? There’s Still an Option
Maybe your income is nowhere close to being able to save $1,000 a month or you’re in the process of paying down old debt. It’s ok! All is not lost.
If that amount is not feasible, don’t toss everything up in the air and give up; set up a different goal — maybe $50 a month. And then work on finding ways to increase your income instead.
To increase your cash flow, you may need to make some extra cash via a side gig. One option is to sell the stuff you already have right at home.
Have an Etsy or Amazon Handmade account and a wicked talent for polymer clay, painting, or woodworking? Make the most of it. Offer your crafts to people looking for handcrafted items – they’ll pay you well as long as the quality checks out.
You could also perform tasks at places like Upwork or Fiverr. These sites let you complete various freelancing tasks and get paid. Putting just a few hours in each day can easily build up your net worth over time.
Being able to set aside a $1,000 in 30 days might seem lofty, but it’s doable if you have the income and a little bit of will power. The truth is that most of us waste a considerable amount of money without even realizing it, and getting back on track can be a little bit painful. Start from wherever you are — you CAN do this.
Think of what you could do with that money…Crush debt, pay down your mortgage, put your child in a private school. The possibilities are endless; this is just your start.
Copyright 2020, DailyProsper.com