For many, saving money is both a challenging and daunting task. Many don’t have enough money to pay everyday bills, let alone have enough money to even think about saving. With daily expenses skyrocketing, we barely have enough money to live a basic life, and some of us find that we have to rob Peter to pay Paul. It’s an endless cycle of insufficient paychecks to put food on the table. Don’t think you are alone in this situation. Countless people are in this same predicament at this very moment.
Did you know that half of Americans are struggling to save? In 2021 there were 331 million people in the United States. That means over 165 million people are struggling to save, and I was one of them. According to CNBC, 53% of Americans had little to no savings, and 70% felt financially stressed. I know it’s crazy! If you find yourself in the 47%, who have established savings, great! You are doing an excellent job! What about the rest of us who fall in the 53% category? Is there no hope for us? Are we doomed to live subpar lives of barely scraping by? By no means! There is hope, which comes in the form of a plan.
I know you are thinking, what is this plan business all about? Grab a cup of joe, sit in your favorite seat, and allow me to explain. A plan is your road map on how you intend to get from one destination to the next. That’s it, nothing more, nothing less. Think of it as your “How am I going to do this?” map. Here are some suggestions to help you build your financial freedom plan.
Establish Your Why
Feeling accomplished goes a long way in establishing lifelong habits. That’s why it’s essential to establish your Why. Ask yourself, “Why am I doing this?” and then answer the question. Are you saving to build an emergency fund for life’s unexpected occurrences, or are you saving to pay for a child’s education? Whatever the Why is, understand it before setting out on your financial journey. Your Why will keep you focused and motivated when the journey gets difficult.
Set a Goal
Setting and achieving goals brings about a sense of pride in our ability to succeed. When selecting your goal, utilize the SMART plan by creating Specific goals, for example, saving for a vacation. Ensure that your goal is Measurable; how will you know you’ve reached your financial destination? Is your goal Attainable? Can you realistically achieve the goal? Are your goals Relevant to your long-term objectives? Lastly, ensure that your goal has a Time limit. Your plan must include clear and precise routes and timelines for reaching your destination.
Start Small
Thinking about huge numbers can be overwhelming and, at times, discouraging. Start small to build up your confidence in your ability to save on a regular basis. At this point, it’s about building consistency and good money habits that will last a lifetime. Do you have $100 a week that you can put away for saving? No? Then save $50 a week. Don’t have $50 a week to save? Then save $20. The key is to start somewhere. Saving $5 per week will yield an annual savings of $260, and it will help you get in the habit of making saving a part of your daily life.
Find Ways to Stay Motivated
Staying motivated was the biggest struggle for me. Boredom finds me quickly, and keeping my attention on one thing for an extended period is difficult. I needed to find ways that kept me motivated, so I started a savings challenge group with friends and family. I also did almost every savings challenge I could find online, such as the 52 Week Challenge and the Money Bingo Challenge. Some of my family members are motivated by the cash envelope-saving method. Seeing the money stack up helps them see their progress and thus keeps them motivated to see the dollars add up!
Find Ways to Save Money
Let’s face it sometimes, we are the biggest obstacle in reaching our financial destination. I have a question for you. Earlier, I asked you to grab a cup of joe. Where did you get that cup of joe from? Your cabinet or Starbucks? I saw you roll your eyes! I know you’ve heard it before but a $5 cup of coffee daily amounts to $1,825 in a year. Say what! Yes, that daily coffee habit comes with a hefty price tag, and Starbucks loves you for it.
Dining out is also another culprit. In the not-so-distant past, I indulged in dining out multiple times weekly. I spent so much money on one meal that it became downright ridiculous. The amount of money I spent on dining could have paid for a month of groceries. The key is to cut down, not cut out. I have an affinity for dining out, but I’ve restricted it to once a week rather than multiple times a week. Although I am not a coffee lover, I am a tea lover, and the occasional splurge at my local cafe will not break the bank. Cutting down allows me to enjoy life and plan for my future, and I feel good about both decisions.
Start a Side Hustle to Save Money
If your money is a little funny and leaves you crying at the end of the week, dear one, it’s time to get a side hustle. Side hustles are an excellent way to bring in additional income. Think about what you are or want to be good at, and invest some time and effort into figuring out how you can make money doing it. Do you like to drive? Drive for Uber or Lyft. Do you like to shop? Shop for Walmart customers and deliver the goods to them. Are you good at doing hair? Do some hair on the side. Love kids? Baby sitting on the side is an excellent way to bring in a few bucks.
Have you ever considered blogging, Facebook, or YouTube as a way to earn some extra cash? My friend, Andy at StockFit, delves into how you can make extra money by ad posting. You read that right! In their article Ways You Can Make Money and Get Paid to Post Ads you will discover that ad income is not just limited to those platforms listed above. There are many avenues to increase your cash flow in the ad posting world.
Get those creative juices flowing and learn how to earn extra money.
You will be well on your way to building your savings utilizing the tips above. Remember, your financial plan should be just as unique as you are.