Has anything like this happened to you? You’ve been putting money into your savings account. Then a car repair hits, draining your account. You have to start your savings over from scratch.
First of all, I want to congratulate you that you had savings to pay for the car repair. That’s a huge achievement. You didn’t have to take on debt or borrow a friend’s car till you could afford to get yours repaired. Take a moment to recognize that achievement.
But I understand the frustration. You finally had momentum, but suddenly you’re starting over again. Wouldn’t it be nice to get ahead instead of just keeping up? And how long will it take to get your savings back to where it was?
Here are some tips that might help. Consider this your savings rescue plan while you rebuild. These are simple ways to save an extra $100 every month. You don’t have to do all of these, but pick 1-2 to start with. It’ll help you regain your momentum.
Tip 1: Pause Subscriptions
It’s so easy to get caught up in online subscriptions that auto renew. You might not remember what you’re subscribed to, especially if it’s quarterly or annually. You wonder why your money keeps disappearing.
Take a look at all your subscriptions: streaming services, apps, magazines, recurring shopping items. Do you really need all of them right now? Have you used them in the past two months?
Try pausing your subscriptions for three months to see if you miss them. If you don’t need them, or don’t use them often enough, cancel them. You can always renew at a later time. This can potentially save you $10-$25 per month or more.
Tip 2: Cook One More Meal at Home Each Week
Take-out food is convenient but expensive. It has a way of sneaking into your week without you realizing how much it’s costing you. If you swap just one takeout meal for home cooking, you’ll start rebuilding your savings this week.
Your swap doesn’t need to be difficult, either. Instead of takeout, try picking up a pre-made pizza at your grocery story deli, and grab a pre-made salad to go with it. The food is just as easy and tasty, and you’ll avoid a long drive-through line. You could save $10-20 a week with this one change.
Tip 3: Give Yourself a Weekly Allowance for Treats
Most budget experts recommend a little cash for treats. This offers some flexibility in a tight budget. But those small items that cost a few dollars can add up during the month. It’s hard to keep track, and by the end of the month, you’ve spent $100 you could have saved.
Remember that allowance you probably had when you were a kid? You were free to spend it, but when it was gone, you had to wait till the next week for more.
Try a grownup version of a weekly allowance. Put aside $40 cash for small treats: coffee, snacks, whatever little thing comes up. Be sure to use that cash, not a card. Before you spend, consider how much cash is left and if that purchase is worth it.
When that $40 cash is gone, that’s it till next week. You might have to forego a Friday morning mocha latte, but you’ll have money left for savings. That’s a pretty good tradeoff. You could save $20-$30 a week.
What if you want that one little extra for $5 after your weekly cash is spent? Can you break out the debit card?
Take the time to reflect on whether you really need it or can do without. If it’s coffee with friends, can you have a free water and just enjoy their company? If you really want that coffee, can you trade ahead and just give yourself $35 next week?
The point is not to deprive you of coffee with friends. It’s to get you thinking and reflecting on those small purchases instead of just spending without tracking.
Tip 4: Try a No-Spend Day
A no-spend day is a great way to save, almost without thinking about it. Try a weekend or work-from-home day when you’re not tempted to a breakfast or lunch out. Decide not to spend any money that day. Put what you would normally have spent into savings. You can save $10-$15 or more per week this way.
Tip 5: Use an App to Save
Your bank may have a round-up savings program, or you can find a round-up app. If you pay $3.75 for coffee, the app will round up and charge you $4. It will put that extra 25 cents in savings.
Saving 25 cents might not seem like a lot. But it adds up over a month’s worth of small purchases. Best part: You don’t have to think about it. You’ll be glad when you see how your savings balance has grown. An app like this can help you save $15-$25 per month.
These are just a few simple ways you can boost your monthly savings and rebuild any lost savings. Give it a try. Small steps add up. You’ll enjoy watching your savings grow consistently over time.
See what’s realistic for you. You can still enjoy your life fully while shaving a little savings off the edges. Find a balance that will help you stick with your plan for the long run.
*****
Disclaimer: This article is for informational purposes only and is not financial advice. I am a content writer, not a financial professional. Readers should consult a qualified advisor before making financial decisions.
*****
Looking for personal finance content that connects with your audience and encourages real-life action? I’d love to help your clients feel confident about their money. Please feel free to reach out.
Janet Eriksson 