Many of us want to start saving money or accumulating more money than we have already saved. Saving money can be a hard habit to get into especially for college students. However, summer is approaching and because many of us will be working part time and even full time jobs, it is the perfect time to implement money saving habits and experiment with different money saving strategies. Whether you have a specific financial savings goal in mind or you just want to build an emergency savings, fund here are some money saving strategies that you may want to try.
Dollar Amount Method:
The dollar amount method is one of the simplest ways to save money. All you need to do is pick a dollar amount that will help you reach your specific savings goal over a period of time, or just a number that will help you grow your money. For example, you may choose to put $15 dollars of each paycheck into your savings account. If you work every week over the summer (4 months) and save $15 every time you get paid (bi-weekly), you will have $360 saved by the end of summer.
Paycheck Percentage Method:
Saving a certain percentage of each paycheck is perfect for people who make inconsistent paychecks and do not feel comfortable picking a specific dollar amount to save each time. After you establish a percentage, which could be higher or lower depending on your financial goals, calculate that percentage of each paycheck and put that amount of money into savings. For example, if you want to save 12% of your paycheck and you make $215 dollars, you would save roughly $25 from that paycheck. Depending on how much money you make, your dollar savings amount might be higher or lower each time, but you will be saving money, and that is all that matters!
Pay Yourself First Method:
The pay yourself first method is a strategy in which you do not save any money from the previous paycheck until you get your next paycheck. Here’s how it works…. Ben gets paid $300 working at his summer job as a clerk at a shoe store. Ben first pays his cell phone bill for $40, then he pays his car insurance bill for $100, he buys gas for $25, lastly he and his girlfriend go on a dinner date for $30. At the end of the two weeks, Ben had $105 remaining in his checking account and he puts all of that money remaining into savings.
The Loose Change Method:
The loose change method is simply saving your loose change. Every time you buy something with cash and get cash back in the form of loose change, you could take those coins and put them into a piggy bank. If you do not use cash often, there are round-up savings apps, such as Acorns. Acorns is an app that syncs with your checking account. Every time you purchase something, Acorns rounds your purchase up to the next dollar and invests the leftover change into a brokerage account. It may not seem like a lot, but you would be surprised at how quickly your money can grow without you even realizing it!
Overall, there is no right or wrong way to save money, as long as you are growing your savings in alignment with your personal goals. In addition, remember that every little bit counts. Even if you feel like you do not have the means to save much, practicing savings strategies and getting into the habit of saving can lead to greater financial security and success!