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?
Come party with me! Here are all the link parties I do each week.