Challenge #9: Practicing incremental savings
The best time to save money is when you have some…
By putting aside small amounts of money in increments, you will get into the habit of saving and building up your funds.
In my workshops, whenever I ask the participants “who saves extra money?” I see very few hands raised. “I never have enough to put away, after paying my bills,” is the most common reason for the tiny amounts in their savings accounts.
However, by saving small, incremental amounts of money on a daily basis, you will actually end up saving a great deal. The trick here is to be consistent and automatic about it. Try the following action plan, and see how much money you can put aside.
Every day, for the next month, you’ll start to incrementally save. This section should actually be called the “One-Month Action Plan,” because it requires a full month to be effective.
All you have to do, for the next 30 days, is save $1 more per day, then you did the day before. So today, you’ll put $1 aside in a jar or envelope. Tomorrow, you’ll put $2 in the jar or envelope. On day 15, it will be $15 set aside, and by the 30th day, you’ll put $30 aside.
By the end of the 30 days, you’ll have $465 In that envelope. Transfer that money into your savings account, and start again, from the first day of the month. If you adhere faithfully to this schedule, you’ll save more than $5,500 by the end of the year.
You can add to this total by daily finding loose change in your pockets, in the sofa cushions or at the bottom of your purse, and
Every evening, write down, on the next page, your plans for the money you have saved.
For now – Gerdy’s addition
This one is already challenging for a week, so for a whole month, that’s a stretch! But imagine the feeling to have some backup savings…. that if your car breaks down, you know you can afford to repair it.
Especially since this is not going to give you instant gratification, this challenge will be a tough one to practice. Take a moment and acknowledge what comes up as an excuse not to do this challenge…
And then, think about one big goal, that you would love to save for…
What do you dream of, that seems impossible… but maybe, if you stretch your saving muscles long enough, could be within reach?
Live fully and be awesome…