This post may contain affiliate links. Please read my disclosure for more information.
Putting a little money away for a rainy day isn’t always easy. You may have some good intentions, but at the end of the day, there just isn’t any money left. Somehow whatever you make is spend before you make it to the next paycheck.
It can be especially hard to do if you are barley making ends meet or are in debt. You’d rather use the funds to pay off your debt. But it’s when you are in these situations that it is more important than ever to make sure you save for those unexpected expenses.
It all starts with a budget
Start by making a personal budget. Take a look at what you bring in each month. Next, write down all your fixed expenses. These are things like rent, car payments, utilities etc. Figure out how much you need each month for groceries and other essentials. This is your bare bones budget. It’s good to know what you need to get by each month.
Get your FREE financial printable worksheets today!!
Next it’s time for a little bit of math. Start with what you bring in each month and subtract all your core expenses. What you’re left with is your discretionary income. This will pay for entertainment, clothes and other non essentials etc. And from here on out, part of that discretionary income will go into a savings account.
Setting you savings on autopilot
Pick a number you’re comfortable with. Maybe that’s just $20 per month, maybe it’s $500. Put it in your budget and treat it like any other bill. It won’t take you long to get into the habit of setting aside that money for savings. To make it even more hands-off, talk to your bank about setting up a separate savings account. Then set up an auto-deposit to have the savings transferred to the new account as soon as your pay check comes in each month. If you don’t see it, you’ll never miss it and your savings will run on autopilot.
Audit your savings
Don’t forget to audit your savings from time to time. Take another look at your budget. Can you increase your savings a little more? Maybe you can start meal planning to save a bit of extra money out of your grocery budget. How about looking for ways to reduce energy consumption around your home to reduce your monthly bill?
There are many things you can do to squeeze more money out of your budget. Check out these post for some great tips.
Super Simple Ways to Save $1000 a Month
99 Frugal Living Tips
How I Slashed My Grocery Budget In Half (and so can you)
13 Ways to Reduce Your Energy Bills
10 Financial Habits You Must Start Doing Today
Give your savings a boost
Another great way to boost that savings account is to take any extra money – thinks like birthday cash, tax return, bonuses etc. – and put them straight into the savings account. Again, you won’t even miss the money, but it will help you build up your savings quickly.
You can also side hustle to make a bit of extra money to boost your savings. There are many ways you can make some extra money in your spare time from home.
Check out these articles for some great tips on bringing in some extra money.
Make Money Flipping Flea Market Treasures
How to Make Money With Amazon Arbitrage
Step by Step Guide to Starting a Blog ~ No Technical Skills Required
5 Businesses You Can Start For Under $200
How To Earn Passive Income With Pinterest
Growing you savings
Make sure your savings are sitting in an interest bearing account. Since you won’t be touching this money unless it’s a dire emergency, you should be able to earn at least a little interest. Talk to your banker about your best options and start putting your savings on autopilot.
You can even go further and set up a savings account at another bank altogether to make it a bit more difficult to dip into your savings when you are running low on funds. Check out Discover’s online banking savings accounts, they offer interest rates 5 times higher than most traditional savings accounts to help grow you savings faster then in a traditional savings account.
Having some money put aside for emergencies is really important to you financial health. It is a must, even when you think that you can’t afford to save any money, in fact this is when it is most important to have those funds. So take the steps needed to put your savings on autopilot today.
Do you have any other tips to put your savings on autopilot? I’d love to hear them! Please share in the comments.
Sign up below for my free course, 7 Steps to Financial Freedom to get on the road to a brighter financial future.
7 Steps to Financial Freedom
7 Steps to Financial Freedom ~ Free email course. Take your life back. Join Now!!