How to Simply Save Money

katie-harp-pinterest-manager-1080597-unsplash

Saving money begins with your mindset, then come discipline. When you combine the two it becomes a lifestyle. Think of money-saving methods as skills you begin to teach yourself and implement in your life which brings financial freedom.

Saving money doesn’t mean you have to quit spending altogether and doesn’t mean stop spending and cut out everything that’s fun. But it does means you have to prioritize some financial areas over others. This is where your lifestyle begins to change for the better. Simple changes to your daily routine can yield small savings that add up over time.

Sometimes saving money requires sacrifice and intense discipline. If saving money were easy,  everyone would do it and do it well. Regrettably, a large amount of people has not developed these skills, yet. But you have to start somewhere. Sometimes saving money can be easy! We’ve put together a list of very simple and easy-to-implement ways to start saving money right now. These methods if implemented, will began to create the mindset, build discipline and your savings has started.

Each method is a level that should be achieved before moving to the next method. Over all if you can master or at lease get a good grip on method 1, method 2 would be a lot easier to accomplish but either way all in all you are saving your money.

Depending on how much you want to save here’s what you can do.

cash currency dollar finance
Photo by Miguel Á. Padriñán on Pexels.com

Method 1: Envelope/Jar Method – This is a beginner method that is used even at the level of the rich in some form or fashion. To start this is what you do.

  1. First, find a regular mailing envelope and a empty jar or juice bottle. On the envelope write “Savings”, underneath the word Savings Write “What goes in does not come out”. This helps you train your mind ever time you see the envelope you know you are saving, strengthening your mindset toward savings,
  2. Second, find a location to store the envelope and the jar, somewhere out of site, but not too far, somewhere you can access them easily. Once you have found a nice location to store the envelope and jar, you have just created your own private savings account. No Monthly Fees, 0$ to start.
  3. Third, funding your account is simple. Reach in your pocket, check your wallet, check the couch, check the car, or just ask someone if they can give you $1.00 and put that money in your envelope and the jar. And BOOM!! You just started a savings account with money in it.

Now every now and then throw a $1.00 or more in the envelope and change in the jar. But keep the Mindset “What goes in, does not come out”

flat lay photography of calendar
Photo by rawpixel.com on Pexels.com

Method 2: 52 Week Challenge – This is a more disciplined method to follow. Method one prepares you for this method of savings. Method 2 is more focused on discipline. Now you have a schedule you must follow to achieve method 2. To Start this method, you need $1.00. For 52 weeks you will be putting money aside for savings. Here is the catch, what ever week you are in, that is the amount of money you save (example if you are on week 4 you would be saving $4.00, for week 9 you would be saving $9.00, etc..) at the end of the 52 week you will have saved $1,378.00. I always start this at the beginning of the year until the end of the year.

Listed below is the chart to show what your envelope will look like:

52 Week Money Saving Challenge

Week Save Balance Week Save Balance
1  $  1.00  $     1.00 27  $  27.00  $    378.00
2  $  2.00  $     3.00 28  $  28.00  $    406.00
3  $  3.00  $     6.00 29  $  29.00  $    435.00
4  $  4.00  $   10.00 30  $  30.00  $    465.00
5  $  5.00  $   15.00 31  $  31.00  $    496.00
6  $  6.00  $   21.00 32  $  32.00  $    528.00
7  $  7.00  $   28.00 33  $  33.00  $    561.00
8  $  8.00  $   36.00 34  $  34.00  $    595.00
9  $  9.00  $   45.00 35  $  35.00  $    630.00
10  $10.00  $   55.00 36  $  36.00  $    666.00
11  $11.00  $   66.00 37  $  37.00  $    703.00
12  $12.00  $   78.00 38  $  38.00  $    741.00
13  $13.00  $   91.00 39  $  39.00  $    780.00
14  $14.00  $ 105.00 40  $  40.00  $    820.00
15  $15.00  $ 120.00 41  $  41.00  $    861.00
16  $16.00  $ 136.00 42  $  42.00  $    903.00
17  $17.00  $ 153.00 43  $  43.00  $    946.00
18  $18.00  $ 171.00 44  $  44.00  $    990.00
19  $19.00  $ 190.00 45  $  45.00  $ 1,035.00
20  $20.00  $ 210.00 46  $  46.00  $ 1,081.00
21  $21.00  $ 231.00 47  $  47.00  $ 1,128.00
22  $22.00  $ 253.00 48  $  48.00  $ 1,176.00
23  $23.00  $ 276.00 49  $  49.00  $ 1,225.00
24  $24.00  $ 300.00 50  $  50.00  $ 1,275.00
25  $25.00  $ 325.00 51  $  51.00  $ 1,326.00
26  $26.00  $ 351.00 52  $  52.00  $ 1,378.00

When you have achieved week 24, it may be time to deposit those funds from your 52-week Challenge envelope to a savings or investing account that offers interest (APY). We say week 24 because most bank and investment accounts opening balance is $300 – $500. Which now you are making money to save money. This method is great for starting or increasing retirement accounts, money market accounts and investment accounts.

black calculator near ballpoint pen on white printed paper
Photo by Pixabay on Pexels.com

Method 3: The 50/30/20 budget– for disciplined money management. Dedicating 50% of your income to bills and debt, 30% to wants and fun and 20% to savings and investing. This method is after you have completed method 1 and method 2. By this time, you should have 2 maybe three way of saving money in accounts (Envelopes, Jars, Bank saving account)

Example 50/30/20 budget

If your check is $700.00

  • 50% is $350.00 to bills and debt
  • 30% is $210.00 for wants and fun
  • 20% is $140.00 is for savings and investing

In my opinion this method is good if you have more than 1 stream of income. One or 2 paychecks per month would be straining to your income.

finance sketch near laptop computer
Photo by rawpixel.com on Pexels.com

Types of savings

There are different types of savings you should aim to accumulate over time.

  • Emergency funds – emergency savings, which is money you can dip into at any time to cover unplanned bills, etc (Method 1)
  • Short-term savings – short term savings, which is money in a savings account collecting interest, waiting for a specific goal, buying a house, buying new car, starting a business, etc (Method 2)
  • Long-term savings or retirement savings – long term, money you can invest in stocks and bonds, real estate, Retirement IRA’s, 401K, Roth and Traditional IRA or any other investment that will yield a good Return on Investment(R.O.I) (Method 3)

As you work toward your ultimate financial goal, make sure to put your new found funds in a good high-yield savings account to maximize your money. Some of the best online accounts pay interest rates as much as 150 times higher than large traditional banks.

One comment

  1. These are some methods that I’m willing to try out since nothing I’m doing now is working…lol Anyways this is a good manual to basic saving methods with a couple of great examples

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s