15 Aug How to Build Your Savings From Nothing
First and foremost, being honest with yourself is the first step in learning how to build your savings. If you can admit that your saving habits aren’t up to par, you’re already one step closer to your goal. Statistics show that millions of American adults have zero dollars saved for an emergency. So it’s essential to start building your savings so you’ll have a safety net beneath your spending.
1. Start small.
Starting off by adding just a few dollars each week to your savings account is a very effective way to begin building your savings. You can’t expect to meet your goal in a timely manner if you start off with an unrealistic amount from the very beginning. Always pick a number that you know you can achieve, and that best fits your income.
2. Cut back on spending.
It might seem that with chunks of money being reserved for your savings, there isn’t enough money to go around for all of your wants and necessities. First, stop spending so much on the “wants.” Then, focus on paying off your high-interest bills, like excessive credit card bills. Once those are cut out of your monthly spending, minimizing your expenses should be smooth sailing.
3. Reward yourself.
As you progress on your savings journey, don’t forget to reward yourself. Each time you reach a certain goal, go see a movie or treat yourself to something sweet. Just dedicate that reward system to something that’s significant in your life and also something that you enjoy doing. It’s important to reward yourself because you’re recognizing your success.
Getting on the right track to building your savings is a learning experience. Starting from the bottom and gradually working your way to the top relieves not only day-to-day stress financially, but mentally. Getting a hold on how to control your money by saving gives you a sense of wealth and opens the door for future investments.