How are you saving? I recently wrote an article on having an emergency fund, and part of having such a fund entails actually saving up money. So, how does one save up money? It seems simple, but like everything, you should have a strategy.
My basic formula for saving up cash is to use all the money that I make from side gigs for this purpose. I make money from writing these articles. I also have a part time job. All the money that I make from these side jobs goes to savings. The paycheck from my full-time job is what pays my bills, funds my investment accounts, and buys discretionary items.
My saving strategy is geared towards funding my emergency fund. You can employ a saving strategy for any purpose, however. Whether saving up an emergency fund, for a car, or for a down payment on a house, there are lots of ways to reach your saving goals.
There are endless ways to save money, and you are limited only by your imagination. Here are a few ideas.
As I already mentioned, one of the easiest ways to make extra money is through picking up part time work. The type of work you do is up to you, and most places looking for part time employees will work with your schedule. A site like Indeed is a good place to start your search.
If working part time doesn’t appeal to you or work for your schedule, then consider a side hustle. This could be anything from a side business to buying and selling items. Many people buy and sell on sites like Craigslist and eBay. Some of them make several hundred dollars per month.
Another way to save money is to cut expenses. Pay off debt, cut back on discretionary spending, downsize your life, etc. It’s amazing how much extra money you have when you eliminate debts and trim back on spending.
Not All Savings Are “Savings”
Finally, one good thing to keep in mind is that not all “savings” are actually savings. For example, simply because a store is offering a discount doesn’t necessarily mean that you should run out and start shopping.
Another instance of potential false savings is buying too much of something. Megan over at Counting My Pennies discovered this when she put her purchases on Amazon’s Subscribe and Save on autopilot. What happened was she stopped needing what Amazon was sending and as a result, bought more than she needed. Check out the story here.
Whether through working, doing side gigs, or trimming expenses and debts, you need a strategy to save money. Like anything else on a budget there should be a category for saving. Once you establish how much you want to save you need a plan to get there. So how are you saving? Share below.
Writer and Investor. Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.