Saving money 101
I’ve read articles that tell you how to budget by painting your own nails instead of going to the salon (my personal favorite) or walking your dog instead of paying someone else to do it. This isn’t budgeting. This is decreasing your expenses. This is a good start, but it’s not budgeting. I’m going to tell you how to budget and save money for the average person. Budgeting and saving money seems impossible in today’s economy. There are little steps you can do now to learn how to save, and once you get into the habit, it’ll be easy.
Let us begin. First you need to find a jar, a plastic bottle or a coffee can. Clean it and let it dry thoroughly. If it is a jar or a can, tape the lid on or glue it on. Cut a small hole in the top. The hole needs to be big enough for a tri-folded dollar bill to fit, but not your hand or fingers. Find all the change in your house and car, and put it in the jar.
Unexpected money is money you get when you have a yard sale, for example, or you sell something you don’t need. With unexpected money, each time you get a dollar, put a penny in the jar. If you get $10, put a dollar in the jar.
Withdraw $5 each time you are paid and put it in the jar. Continue this for six months, and you’ll notice you didn’t really miss the $5. So now, for the next six months, withdraw $10. If it’s too much of a struggle, try $7. You do not want to make matters worse for yourself or your family, so for now, a little at a time. Once you get used to the amount, change it. But only by a little, no more then $2 to $5.
If you get a bonus or if you get a raise, withdraw $10 in celebration and move it to your jar.
Now it’s been a year, and you haven’t touched the jar. It’s time to put it in the bank. Take the jar to the bank, and open it at the counter. DO NOT deposit it in your regular checking account. Instead, put it in an additional service free account or a savings account. Some banks charge for a savings account, so unless it’s free, don’t sign up for it. If you open a new checking account, DO NOT order checks or a debit card. Remember, this will act as a savings account. You can even open a new account at a different bank to help from dipping into the account. Ask for paperless statements, and then just delete the email so you won’t know how much is in there.
Don’t forget to reseal your jar and start again.