Live from one paycheck to the next and need to save money? Easy tips to get started

Are you living paycheck to paycheck like more than 50% of all Americans? Do you feel like you only have enough money to pay your bills, take care of a few essentials, and maybe go out and have some fun? Saving money sounds like a wonderful idea, but there simply isn’t any extra money to save. It means that you may want to reassess your budget or spending. Planning makes saving a breeze. Let’s look at some ideas that can help you manage your money.

1. Here’s a quick and easy tip to get you started. Maybe you wrote a budget and found that it’s negative every month. Loose change is king. Don’t hate all those coins in your pockets or at the bottom of your bag. Turn loose change into a good savings plan. Get a large jar or can and deposit all your loose change daily. Be sure to hide the tin so that the money in it doesn’t turn into pop and chip money.
2. Set a goal of about $1.50 per day or the cost of 1 soda, which is $45.00 per month. If this is too big, scale it down and start with just $25 per month, which is only 0.83 cents per day. Don’t be afraid to push yourself. This money is for you. Consider deducting the money directly from your check or bank account. Make these savings account payments automatic. By making your payments automatic, you’ll be consistent and not be tempted to spend it.
3. Open a savings account that is not easily accessible. If the goal is to save money, it cannot be in a debit card account or ATM access. This allows the account time to grow before you pinch it.
4. Try not to use a debit card. Use cash only. Debit cards give you a false sense of security and often cause you to overspend.
5. Reduce the number of times you eat out. Track the dollars spent each month at restaurants. If you normally spend $300.00 a month on dinner, try spending $200.00 a month and take the extra $100.00 and open a savings account.
6. Finally, create a budget. I know it sounds old fashioned and boring, but it works! I asked a friend to help me with this example. I asked him how much he pays each month in bills, he said “a lot”. I asked him if he could save $150.00 a month and he told me it was only possible on a budget.

real life example

My friend’s name is Beverly. She is a single mother of a handsome 14-year-old boy. She lives in a 2-bedroom apartment, drives a 2005 Ford Focus, and has a husband x who is actively supportive of her, providing financial and emotional support. Her son is a typical young adult who loves sports. Her favorite sports are basketball and golf. This is how we got you to save $150.00 per month

Beverly makes about $50,000 a year before taxes and receives about $5,000 a year through child support. Let’s look at her bills and see if we can reach our goal of saving $150.00 per month.

Beverly saves 5% of her gross earnings through her Jobs 401k plan. Your monthly bills equal $2,647.00 before your savings goal of $150.00 per month with your savings calculated on the total monthly bills you spend $2,747.00. The breakdown of your bill is below. Beverly brings home $3,246.00 per month. This number includes $400.00 per month from her ex-husband and $1423 paid twice a month from her job. This leaves Beverly with $499 per month to enjoy herself. Another way of looking at this is that Beverly can spend $116.43 per week on anything she wants.

These are Beverly’s monthly expenses:

• $965.00 – Rent
• $50.00 Electricity
• $60.00 Telephone
• $75.00 wire
• $89.00 Cell
• $100.00 per month in gas for your car
• $80.00 laundry and dry cleaning
• $300.00 per month for groceries
• $336.00 automobile note
• $67.00 car insurance
• $100.00 credit cards
• $100.00 per month for fun money
• $275.00 per month titles and offers
• Savings goal of $150.00 per month

Create a budget by understanding where your money is spent each month and how much is left over for fun. This should take less than 30 minutes. Don’t put aside any monthly bills. Using a budget is the most effective way to save money.

If you spend all the money you have saved, don’t stop at it. Start over immediately. In time you will be very proud of the results.