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You may think it’s impossible to save money when you’re living paycheck to paycheck. In fact, it’s the last priority on your list.
I mean, you can barely pay the bills, how are you supposed to save anything for yourself?
Not only is it possible to save money when you’re paycheck to paycheck, it’s vital. The only way to start giving yourself some breathing room in your budget is to stop giving all your money away. You must start putting some money back for yourself, every time you get paid.
Here’s some super simple ideas to get you started saving money!
1. Make it Automatic
A simple and classic way to save money: the automatic bank transfer.
Set it up to where every payday a certain amount gets transferred right away from your checking to your savings account. You could even split your direct deposit at work to have a portion go straight into your savings account, this way it never hits your checking account at all.
I started this with a free online account with Ally bank. I transferred just ten bucks every payday, and I used it as my fun money. When I’d get $60 or so in the account, I’d transfer it out and go splurge at Sephora or Barnes and Noble.
2. Use an App
You can use a nifty app like Digit or Stash to help you save money without thinking. It basically rounds up your purchases and puts the money in savings for you. So if you spend $4.61 at the coffee shop, it’ll deposit $0.39 automatically into savings.
It may seem a little silly to save 39 cents, but if you’re someone who uses their debit card for most of your spending, this really adds up.
There are even some banks offering this feature too. Always check with your local bank to see what cool new programs they’ve got started!
3. The Five Dollar Bill Trick
I got to learn how tons of people manage their money during my time in banking. One great idea I learned from a few customers was the $5 bill trick.
It goes like this. Every time you receive a five dollar bill, put it away. Try to do this for a whole year. If you prefer to use cash to spend money, you’ll have a bunch of cash saved by the end of the year!
4. Every Time You Say No…
…put it in savings instead! I wrote a whole post about this but it is so important to actually save the money that you save.
So anytime you decide to put something back at the store, log on to your banking app and transfer that amount from your checking to your savings.
You already thought about spending the money, so now reward yourself by saving it for later.
Yes, You Can Save Money While Living Paycheck to Paycheck
I love how none of these ways to save money require any willpower. If you stress and struggle to save, take the mental aspect out of it! Don’t make it one more task on your to do list, or one more thing to feel guilty about.
Try one (or all) of these money saving tips and you’ll be racking it up in no time!