I think most everyone can agree that it is a good to save money. Emergency funds are necessary for those unexpected situations. Then there are those big purchases that require saving ahead of time if you want to stay out of debt. You even need to keep money set aside for non-emergencies but necessary things like yearly car repairs. For us, building that savings is hard.
We tend to build it in large amounts like when Matt makes bonus at work or has storm work or with things like our tax return. With no storms in sight, bonus next to impossible right now, and our tax return used to purchase Matt a new to him car, our emergency fund (as well as other funds) are very small and growth is almost non-existent.
To help with that, I have started a new savings plan. Each week, I take what we spent on groceries/household items, and round up to the nearest dollar. I put that rounded amount in savings. Then I take what I saved by using coupons and shopping sales and add that to the savings amount. On top of that, if those amounts are less than $10 that week, I add $5 to the amount to go to savings. These are all small amounts but they are helping to build our savings now instead of waiting for large sums. It is still getting us ahead.
The other thing I am doing is setting aside a small amount of cash each week for certain, minor expenses. Right now I am saving up for a haircut (yes, I have to save up to make that happen. 😉 ) and for some yard sale money for the summer. When I’m done saving for my haircut, I’ll either turn that envelope into another fund or will just add the amount I had been saving to my yard sale fund.
We’ve only been doing this for a few week but so far it is going pretty good. I know there will be very lean weeks where saving anything will be impossible. Even though it is a small amount each week, less than $30, it is a big step from what we had been doing. It will go a long way to helping us get ahead. I still plan on putting any extra larger amounts aside. Matt sometimes has to work Saturdays. Since that pay is all at overtime rate, that amount gets put aside for our emergency fund or other savings fund. We consider that above normal income as it doesn’t happen every week. So far, these methods of saving money have been pretty painless and we plan on keeping them up.
How do you build your savings?
Leanne | The Transplanted Southerner says
These are great tips. Sometimes it seems like “Well that’s not much, why bother?” when you look at what you have left to save at the end of the month. I love that you have a formula you use. And saving for a haircut? I hear ya! How did that get SO expensive? I feel a little faint each time I pay for one (so – long hair that gets trims every 4 months ather than short style that needs monthly maintenance.)
Leanne | The Transplanted Southerner recently posted…Thursdays with Mother Nature: Homemade Laundry Detergent
Julie says
I’m lucky to get my hair cut twice a year! I like to keep it right at my shoulders but it’s quite a bit longer than that now….and driving me crazy! lol. $20 is the cheapest I have found for a hair cut around here…and I’m no where near any fancy salons or anything!
Kelli {A Deeper Joy} says
These are such great ideas! We’ve set our monthly budgets below what we make and act as though that’s all we make. Then the excess goes straight into savings. 🙂
Kelli {A Deeper Joy} recently posted…Weekend Recap: Fiesta Time!!!
Julie says
When I was still working outside the home, we lived on just Matt’s income minus gas for me to get to work and put mine in savings. We still do that most the time with any income I do bring in. It’s just not as much as it used to be. 😉
Annie says
Your ideas and story provide motivation. Little changes can make big differences. Thanks!
Gentle Joy says
It is amazing how a regular bit of saving… even small… can add up. The consistency and forming a good habit is so helpful. I also save up for a haircut… or garage sale money… or other things we need/want. Good information. 🙂
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Julie says
I’m so glad I’m not the only one who has to save up for a haircut. 🙂
Laurie says
Julie,
You are not alone..I am lucky to get anything done with my hair 1x a year…I treated myself and used bday money last month :o) I cut my hubby and sons hair and trim the girls with 6 kids(1 bioy 5 girls) money for haircuts is not there .
Laurie
Julie says
I am definitely the only one in the house who gets their hair cut by a professional. I often use birthday money for that too! 😉
Leesha @ Living Contently says
These are great ideas! Every little bit helps, and making it a habit makes all the difference. Way to go! Stopping by from the Shine Blog Hop! 🙂
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Julie says
Thanks for visiting!
Stacey @ Creating My Happiness says
I love the idea of saving small amounts at a time and watching them add up. So many times we just ignore small sums of money thinking they can’t do much, when really, they can make a big difference!
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Julie says
They really can! 🙂
Tiffany | A Touch of Grace says
I think it’s fantastic that you’re working on saving, even though it’s not the way you expected to. Having an emergency fund and savings is so important.
Julie says
It absolutely is. 🙂
Julie recently posted…Making Chores Fun
MM says
Every penny saved is a penny earned! It is amazing how just a little bit saved here and there add up to a lot over time! Great post on how to be careful with every penny in your hands 🙂
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Julie says
Yes, it is amazing how quickly those little amounts do add up. 🙂
JES says
Great post! Every bit adds up, I am a firm believer in this!!! Thank you for sharing these tips on the Art of Home-Making Mondays! 🙂
JES recently posted…Unschooling?! ~ Grace for Overwhelmed Homeschooling Mothers
Kristen @ Joyfully Thriving says
Well said! Every little bit adds up and counts in savings! We recently paid off our last bit of car debt, so are also working on building up the 3 months of expenses in our emergency fund. I’m tucking aside my piano earnings as well as anything I can make in small and creative ways. I review books and have started selling them to Half Price Books after I read them. It’s small bits but an extra $10 a month is still an extra $10 a month to put in savings! It’s exciting to see progress, no matter how slow and steady. Good job to you!
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Julie says
That’s a great thing to do with the books. Sometimes I sell the books I review when I’m done but often, I like them too much to get rid of them. 😉
Heather @ My Overflowing Cup says
You are so wise!
Too many times, we think that small amounts don’t mean much so we don’t bother to save little bits. They do, however, add up over time.
We do the same thing when it comes to extra money coming in. Since it isn’t something we would normally have, we try to use it very wisely rather than just spending it.
Saving money actually becomes addictive, doesn’t it? Once you see that number start to grow, you want to keep feeding it.
When I am tempted to spend money on something, I ask myself what I want more – the item or the goal? Usually the goal wins.
Thanks for sharing your story and your wisdom with us! Blessings.
Heather @ My Overflowing Cup recently posted…19 Ways to Cut Back an Already Bare Bones Grocery Budget