Finance & Career
Finding money to set aside for savings is easier than you may think. If you are looking for money to save, just look at your habits. Study how you are making spending decisions and how you can improve those decisions. You may have leaks in your spending patterns, meaning you are spending money that is not accounted for because you do not have a spending plan in place. Even if it is only a small amount each week, saving this money can add up over time.
Start by saving a small amount of money that you would have normally spent out of habit. Try starting with saving $3 per day. If you save $3 each day for seven days, by the end of the week, you will have saved $21. Continuing this pattern could help you save money throughout the years.
- If you save $21 each week for one year, you will save $1,092.
- If you save $1,092 each year you will save
- $5,460 in five years
- $10, 920 in 10 years
- $16, 380 in 15 years
- $21,840 in 20 years
As you can see, small amounts of money can add up if you are consistent. In this example, it was $3 being saved per day. Imagine how much more money could be saved if it was more than $3. What if the money was place in an interest bearing savings account where you gained interest on the money? Your money would grow even faster if it is not withdrawn.
More information about saving money is in the Alabama Extension publication Discovering Leaks in Your Spending.