What would you do with a full savings account? Buy a car? Put a down payment on a house? Pay off some student loans? Start your own business? Having a nest egg can be a serious game changer, Spencer and I can tell you from experience! Here are the do’s and don’ts we used for aggressive saving.
DO Budget for Saving
Immediately upon receiving our paychecks, $200 went directly into our savings account. Do you know how much you spend on rent, food, utilities, and going out monthly? It’s important to have a solid grasp of your spending habits so you know where it’s appropriate to cut spending. When you know the ins and outs of your spending habits, decide how much you can responsibly put into savings right when you get your paycheck. At the end of the month if you have a little extra you didn’t spend, put that into saving too.
DON’T Eliminate Eating Out and Entertainment from Your Budget
It’s important to create spending habits that are sustainable and if you eat out frequently or like to go out for drinks during happy hour, it will be difficult to cut those habits out completely right away. Try going out for lunches instead of dinner and just going out one day a week instead of three or more. Making a few changes slowly can end up being a total win for your savings in the end. Making these changes gradually will also increase your chances for saving success.
DO Make Measurable Goals
It can be very difficult to save without a plan, even a loose one. Know how much you’d like to save and by when and make a plan to accomplish your goal. For example, if you want to save $6,000 in 6 months, you’ll need to save $1000 a month, or about $250 a week. This might not be a responsible or plausible goal, so it’s good to be realistic with your goal setting and to give yourself grace if you miss a goal.
DON’T Spend Your Bonus
Every bit of extra, a bonus at work, a check from your grandma, your tax refund, should go directly into savings. This will take a lot of self-control, but it will help you reach your savings goal so. much. faster.
DO Get Creative with Entertainment
Having fun while aggressively saving may feel impossible, but with a little research and some creativity, you can still have a lot of fun while not spending a ton of money. Find out if your town puts on a free concert series, pack up some wine and cheese and head to the park, or try camping instead of vacationing in a hotel. A little bit of creativity can save you a lot of money.
Saving a large amount of money in a short amount of time may feel impossible, but, with some creativity and determination, it can be done! Have you learned more savings tips along the way? Why not share them! Email email@example.com