Pretty simple, right? It sounds easy but when you’re living on the bare minimal its tough to try to stash some money away. (Trust me, I know!) Its like trying to lose weight, if you lose just one pound it seems easier to lose the second. Plus you stay more motivated when you know that what your doing is actually working. So start small, but think BIG. You’ll get there, you just have to save that first dollar.
“No, sir, I have no experience but I’m a big fan of money. I like it, I use it, I have a little. I keep it in a jar on top of my refrigerator. I’d like to put more in that jar. That’s where you come in.” – The Wedding Singer
Money. Its what make the world go around. Its why people work 60 hour work weeks. Its what we hope to leave our kids one day. And it sure is nice to have a little extra lying around somewhere. But how do you get that little extra? Here are my top 3 simple ways to save..
1. Pay yourself first
This is a theory from Robert Kiyosaki’s book Rich Dad, Poor Dad. He states that before you pay your bills, before you pay your employees, before you do anything with your paycheck, pay yourself first. What he means is take a portion of your check and save first! Its easy to get caught up in what needs to be paid now without thinking about the future. Trust me, the bills will always be there but if you dont save money today it wont be there for tomorrow.
2. Never splurge a windfall
A windfall is described “an unexpected, unearned, or sudden gain or advantage” (in the Merriam-Webster dictionary) and can be any amount of money that you were not expecting. Naturally, the thing to do with money we didn’t know we had coming is to spend it right? Not exactly. If you didn’t plan on receiving the money in the first act like you don’t have it. Save it! Most of the time you will regret frivolously splurging when you know there are bigger and better things that windfall cash can be doing for you. (Like earning more cash, also known as our friend compound interest!)
3. Create a separate account
So we are paying ourselves first and we are saving our windfalls, but if we can see how much money is building up we are that much more likely to use it. I suggest opening a new account at a bank that you have no ties to (and the best interest rates!) and forgetting you stashed it away (until you need to add more to it). Its the old ‘out of sight, out of mind’ trick and I can guarantee it will help build up your savings.