In today’s post I am going to lay out baby steps to save money. If you are horrible at saving any money then I highly suggest that you keep reading to help break that lifestyle. Also, send this post to a friend that could also benefit from reading this post.
Let’s get right into it.
1) Download A Budgeting App
The app that I suggest downloading that will help track expenses is Mint (yes I always suggest this). Sign up and create budget limits in sections like gas, food, subscriptions, etc. By doing this, the app will send you notifications when you have max or exceeded the limit that was set. You will also send out weekly reports on how much you spent and the areas that were hit the most. I like this app because everything is literally on autopilot and the data that is available comes in handy when analyzing what you spend.
If you don’t want to download an app then you could use google spreadsheets and input everything in manually. If you go on Reddit some people have made layouts for you to follow. You could also choose to write everything on paper as well and stick it somewhere that you will notice it.
The whole point is to get this step down and if you can do that then everything else becomes easier.
2) Figure Out How Much You Want To Save
The next thing I want you to do is look at your most recent paycheck and ask yourself “how much do you plan to save today?” If you don’t know, put $20 in savings on your first paycheck. The next time around I want you to put $40-$60 into savings. Keep doing this and the habit of automatically putting money away will become a habit.
If you want to up the stakes the first time around then save 50% of your paycheck every time and put that into savings without touching it. Step 2 is all about building a habit and to do that people need to stay consistent.
3) Live Like Your Poor
If you really want to save lots of money then the only way to do that is to have the mindset of living like you’re poor. I already know what is going on in your head.. “But I am already poor”!! And my answer to that is to literally save everything and sacrifice any desires until you are actually not poor anymore. I know that all of this sounds really extreme but everyone is not good at saving money so having a poor mentality (even though it sounds bad) is helpful in the pursuit to saving money.
This step will be challenging for you all, but I have faith and once you have accomplished all tree, opportunities are endless. Make sure to send me an email and I will personally help analyze what you’re struggling with (or watch youtube videos).
Make sure to send this blog post to a friend that could also benefit from reading baby steps to save money. Thanks for supporting The Finance Starter and don’t forget to read what else I have written below