Everyone wants to have a pretty hefty savings account, and until recently I thought I was the only one with no savings
Living paycheck to paycheck was not my ideal situation, but for the time being I was stuck paying bills that took up a good chunk of my income.
Once I started researching the appropriate amount of money to have in a savings account, what I should be putting away and what I should be spending, I found that a ton of people in their 20s don’t have savings or its a very low amount.
Ive been listening to a podcast called “She’s on the Money” (not sponsored but go check them out!) and through this podcast I have been able to hear tons of young women’s different money stories.
I have always been super self conscious about my money story, especially when I got into a serious relationship with my current partner. No one wants to look like they are irresponsible with their money, and living paycheck to paycheck made me really embarrassed.
I will say that towards the end of 2019 it had worked out that most of my bills were all due at the same time, and I was literally drowning for most of the year leading up.
I wasn’t always good with money, in fact, it took my 22 and a half years to figure it out and hold myself accountable.
I currently work 2 jobs, 7 Days a week, don’t get me wrong this is incredibly tiring but having a little bit more income helps me stay on top of my bills, while building my savings.
Sometimes we have to make sacrifices in order to reach our goals!
Heres how I budget my money and save $1000 fast!
- Make a list of all of your expenses, when they are due and for how much
- Calculate how much you spend on a weekly basis on Gas, Groceries, etc. **Sometimes it can be difficult to just recount so I recommend writing down everything you spend money on for a week or two to get an idea of how much you should budget out!
- Figure out how much money you make on average, I like to round down for this just in case I don’t make as much as I expected to.
- Download an app to help you keep track of your bills and how much you’re spending and saving! I love TrueBill and Emma you can find them in the app store or Google Play!
Now that we have a good base for our budget, heres where the fun part comes in!
Saving money shouldn’t be stressful, now that I have gotten in the hang of saving money, I actually get excited to move money over!
At first it can feel like FOMO when you cant do everything you want to do because now the money isn’t available, but if you think about how good it feels to have a nest egg in your account in case of emergency, it feels a lot better for a lot longer than going out and spending that money right away.
Start slow, you don’t need to save $1000 overnight, do not try to save above your means! You should still be able to live comfortably while saving this money.
Heres my trick, I calculated how much I was spending on eating out, getting coffee, and other luxuries that I do not need in order to be happy. I added all of that up for a week of spending and transferred that amount right into my savings. For example, I spent about $40 on coffee last week, so I moved $40 right into my savings!
I try to transfer about $100 to $200 into my savings a week meaning I could save about $1000 in five weeks. You might be able to save more, or only a few extra dollars a week, and thats okay.
Since we figured out how much we make/spend on a weekly basis we should have a specific amount leftover. Make sure all of your expenses are included in the spend portion of the equation, this will prevent you from going over your allotted spending budget. Now with that leftover amount, try to figure out how much you of that you could comfortably put into your savings. Remember that all of your expenses should be covered so this money would be qualified as “spending money”. I like to leave about $100 in my checking account in case but I try very hard to never take from my savings, unless it aligns with my goals.
If I spend more than $100 extra a week, I have to reevaluate my goals and be strict with myself because for me, thats crazy!
By eating at home, making coffee at home, and not buying unnecessary items, I have saved so much money!
The impulsive things I tell myself I have to have become well thought out purchases. In all honesty, most of the things I have thought about buying impulsively, I forget about by the time I get home. If for some reason there is something I feel like i have to have that does not align with my budget, I will save the money over time to buy it.
If I save up for something, I will normally appreciate it more than if I were to buy it right away. Not to mention if it costs a good amount I will probably regret it shortly after buying it.
If you are able to save around $20 a day, 7 days a week, you could save…$140 a week and $560 a month! Thats pretty impressive!
Let me know your money story and how you save your money!