How to Start a Savings Account

Saving can be hard… Especially when a lot of people are struggling and living paycheck to paycheck. I’ve been there, we’ve all been there at some point, but how can you make your situation better? Time! A savings account doesn’t grow over night and we know that while pennies don’t seem like dollars now, they will, with time.

Last week I talked about how to curve impulse buys and how you could save $2,600 in a year. This week it’s a bit more simple. So how exactly do you start a savings account when you already live paycheck to paycheck?

We posted this question on our weekly Penny For Your Thoughts post on our Facebook page. Here are the tips which were shared by our readers.

“So many people buy coffee each morning -make and take your coffee for a savings of $1.50-4 per day.” – Martha K.

This week there wasn’t many responses, not near as many as last week. A few of our readers said they switched to the all cash method and it helped them watch their spending. Another reader mentioned 10% of your income in savings is a great starting place. My only concern about 10% is, if you gross $700 per week you simply may not be able to afford $70 and that’s okay.

Did you know that you can start building a savings account for as little as $2.85 per day or $20 per week! In one years time you could save $1,040! In 5 years time you could have $5,200 and in 10 years $10,400!

Ways to Save $2.85 per day:

• Instead of stopping for your morning coffee make it at home and put the money you would have spent into savings. (avg. $2-$4 per day)
• If you smoke, cut back and/or quit and put that into savings. (avg. $4-$6 per day)
• Car pool to work if you can and put the money you would have put into fuel in savings. (avg. $10 per week)
• Shop with a list and stick to it. Curve your impulse buys and throw that into savings. (avg $20 per week)

The averages above are guesstimates, but realistic and can help make your goal of a savings attainable!