It may seem impossible to be able to save money for you. All of your money comes in one day and leaves the next day with someone else’s name on it. Yet, you know you need to save money. The problem is figuring out how to do it!
Here are some practical ideas for you to try:
- Pull out $25 every month and put it into a jar at home. You will not miss the $25, and it will grow faster than you think.
- Have $25 automatically drafted out of your account once every month. Have it drafted to a bank account that you do not have easy access to. This increases the chance that you will keep it there.
- Pull out $25 every month and give it to someone else that you trust to keep it for you. Give them permission to ask questions when you ask them for some of the money.
- Use a $5 bill every time you visit a vending machine. Keep the change and place it into a jar. If you hit the vending machine twice a day, use a new $5 bill every time you visit. I had a friend who did this and his jar of $1 coins set him far down the path to debt freedom!
- Use a cash envelope system for your food, entertainment, and blow-it money. Make it your goal to have at least $25 left at the end of the month. Take that money to the bank (or the cookie jar).
- Pack your lunch to work. Very old school, but this method still works wonders! I can eat my lunch for less than $1/day when I pack my lunch. Use the difference between what you would have spent at restaurants and what you paid for your packed lunch to save in a cookie jar/bank.
- Move to a National Forest and sleep in a tent for a year and hunt game and berries for your food. This will significantly lower your housing and food costs. OK OK OK, I was just checking to see if you were still reading.
If you are wanting to start an investment in a mutual fund, you can actually start it with $25! You will have to set up an automatic monthly draft into the mutual fund of at least $25/month as well. How awesome is that? You CAN start investing with as little as $25!
My Dad gave me a book when I was around 12 years old. It was about the power of systematically saving money and compound interest. The name of the book is The Wealthy Barber and it was written by David Chilton. What an awesome lesson! It was reaffirmed to me when I was around 19 years old and on a Thanksgiving trip to a house full of rabid Georgia Bulldog fans. A cousin told me that I needed to be saving now and should continue to do so every single month.
“Even if it is only $50/month,” he told me. $50 a MONTH? I was in college! $50 was approximately $1,000,000 for me! But I started saving and investing every single month.
I have never regretted it. Neither will you.