Blog #5 – Creative Ways to Save

Creative Ways to Save

Saving money is always difficult at first. Whether you’re a high spender looking to cut back or in a low income job like a college student, there are plenty of easy ways to save that you won’t even notice.

So why save? Saving gives you some safety and breathing room financially. It allows you to build up a solid base for bigger purchases, comfort, and the ability to invest and take some risks financially. It’s a lot like having a moat for a castle where you are much safer with it and it will be hard for attackers (taxes, cars, home purchases, unexpected expenses) to break down that wall and deplete your bank account.

The 10% Rule

The 10% rule is simply putting 10% of each paycheck into a savings account. At first I thought saving 10% would be difficult but shockingly I didn’t even notice it. The first time I read this was in The Wealthy Barber and started following the rule while I was working in college only making about $150 per paycheck or less. That’s only $15!!! It adds up over time and there’s always a way to earn more money. You can be a little more aggressive by going 10-15% but not much more for beginners.

Apps That Invest Spare Change

Acorns was one of my favorite apps in college and starting out. The app connects to your bank account and debit/credit card and rounds up to an even number and invests that difference. So say you spend $1.50, Acorns would round that to $2.00 and invest that $0.50 difference. Everytime your spare change rounded up gets to $5 the app invests it for you. This can add up big time and you don’t even notice it coming out of your account! In the 2 years I used Acorns I saved up over $700, so imagine what you can do starting early!

Challenge Yourself!

Try and gameify saving money that isn’t too painful and allows you to live your life the way you want! One of the best things I’ve heard about spending on bigger purchases is, “if you can’t afford to buy it twice, then you can’t afford it,” and that was something that really stuck with me as I started making more money and wanting nicer things. Also, if you do purchase something you want, then put that same amount into your savings account! It can be tough to start in the beginning but seeing that bank account grow is really rewarding and exciting. This leads to bigger and better things like investing which we’ll talk about soon!