There are a lot of people who don’t have any kind of savings built up for emergencies. In some cases, the reason why people don’t have any savings is because they just can’t afford to set aside a lot of money each month to put towards their savings because all of their money is being spent on bills and necessities. But it is possible to do it. You need to change how you save and change how you spend.
Here are the 4 tips on how you can start building up your savings even if you don’t think you can afford to.
Start Cutting Back
Keep track of the things you are spending money on each month by creating a budget and cut out a few of the unnecessary items. Some people don’t realize how much money they’re spending on things like eating out or buying coffee on your way to work. Cut back on the number of times you eat out every month and put that money into your savings account.
Instead of buying a coffee on your way to work, make your coffee at home and use a travel mug to take to work with you. This will also free up more money each month to put into savings.
If you have your paychecks direct deposited into your checking account, set it up so that a little bit of money gets transferred to your savings account. It can be a little as $10 from each of your paychecks. That money will add up fast. If you get paid twice a month, that’s $240 a year.
If you don’t have your paychecks direct deposited, you should still put at least $10 from each of your checks into your savings. It’s easier when you have direct deposit because it’s done for you by the bank. Often, when people have to manually have the money put into their savings, they have a hard time separating themselves from that money.
Use coupons to shop. Couponing has become a huge deal these days. You can get some great deals on items by combining coupons with sales. Many stores run coupon specials and some even have double or triple coupon deals. The money that you save by using coupons can quickly build up your savings account. Before you buy anything, look for a coupon first. You can find them on Groupon, at the official site of the manufacturer or at the stores’ website.
Shop at yard sales and thrift stores. A lot of people dislike the idea of buying used clothing and other items, but the fact is that there are a lot of really great finds at yard sales and thrift stores. A lot of times, you can even find brand new clothing with the tags still attached, as well as used items that are still in really great condition.
The difference in the amount of money you will spend buying used as opposed to brand new can be significant and can do a whole lot in increasing the balance in your savings account.