Did you know that 25 percent of Americans have no emergency savings? In addition, about 51 percent of Americans have less than three months of emergency savings.
If you find yourself in a situation where your car breaks down or you are unable to work, having no savings can be devastating. While you may hear a lot of money saving advice, it can be challenging to put into practice.
If you want to learn how to start saving money in simple ways that work, keep reading our money-saving guide.
Start With Just a Little
When you first start trying to learn how to start budgeting, it can be overwhelming. If you’re already living paycheck to paycheck, you may not know where to get the extra money to put in your savings account.
However, you should start somewhere. One little thing you can do is learn to round up. When cash used to be the primary spend, this would look like tossing your change in the jar at the end of the day.
However, now with more and more people relying on a plastic card in their pocket, this looks a little different. Talk to your bank; many banks have a program that will round up your purchase and toss the change into a savings account.
This is an easy way to save without the extra effort; when you’re doing your budget, you can just round up the change and assume that money is already gone. Instead of spending 5.50 on the frappuccino from your favorite coffee shop, round up to six dollars and see that extra 50 cents head to your bank account.
Understand How Much You Need to Save
When it comes to your savings, you should build with a strategy. Setting goals is essential, but it is impossible to set those goals if you do not know what they should be.
Experts will tell you there is no fixed answer to how much money you should have in savings. However, the rule of thumb is that you should have three to six months’ worth of savings.
This means that if you were to lose all sources of income today, you could still get through the next three to six months without running out of money. This can sound like a lot of money, but one of the best ways to save money is with a goal in mind.
As you reach those goals, you will feel better about what you have accomplished; this will drive you to continue saving.
Start Saving With This Money Saving Advice
Sometimes it can be challenging to know how to start saving money, but with a goal and mind and starting with just a little at a time, you can find your way to financial freedom. Take this money saving advice and use it for a better future.
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