Saving $15 a day might be easier than you think. It’s a good idea, too, since having a savings account to fall back on if times get tough can give you peace of mind.
Too many Americans don’t have this safety net, however. A 2023 YouGov poll found that one in 10 U.S. consumers don’t have any money in savings, and only 14% have amassed between $1,000 and $4,999.
Making a commitment to save $15 every day translates to major money for tomorrow. In a week you’ll have $105, and in a month you’ll have $450. Keep it going and you will have a remarkable $5,400 at your disposal by the end of one year.
Ready to save this much? You may be able to sock that kind of cash away on the regular with the following strategies.
Maximize Your Library’s Resources
If you are not a public library member, this is the time to join. You may be shocked by how much you can get for free, saving you $15 or more in other areas of your budget. Each library is different, but typical discounted and free benefits and services can include:
— Tickets to community events and museums.
— Classes and tutoring.
— After-school programs for the kids.
— Streaming services.
— Movie screenings.
— State park passes.
— Small electronic rentals, such as laptops and tablets.
— Apps for e-books and digital audiobooks.
— Music and movie streaming.
— Meeting space for your groups.
— Office space for your work.
And there may be even more perks at your local branch.
“Cardholders get $2 a day of free copying and printing,” says Doreen Horstin, a librarian for the city and county of San Francisco. “There are free databases like Ancestry.com and auto repair databases that can save you a bundle in car repairs. Even a small town library is a money-saver.”
Set Up an Assertive Savings Transfer
Review your budget carefully to see where you can cut back or reduce spending. It could be expensive salads at lunch, yoga classes you never attend, or anything else that you don’t really need. And if nothing comes to mind, don’t worry. Budgets can be a lot more elastic than you think, so take the $15 off the top.
“If you can, arrange for it to automatically go into a separate account,” says Greg Maxwell, certified financial planner professional and principal at Amicus Settlement Planners LLC.
“Some banks allow you to set an automatic transfer every day, week or month, which is particularly effective,” he says. Chances are you won’t miss the money when it’s gone and your spending will adapt to what you have on hand.
[How to Automate Your Savings — And Why It’s a Good Idea]
Have Your Kids Assume Household Jobs
As a busy parent you may have been paying a professional to do things like walk the dogs, weed the garden or tidy the house. If your children are of the age that they can take on those tasks now, you can save money while they gain a sense of responsibility.
“We’ve had house cleaners for the past five years that would come weekly,” says Jeff Rose, certified financial planner and founder of the website Good Financial Cents. “We were paying well over $500 per month for cleaning services. When our kids got old enough, we replaced our cleaners with our kids. Huge savings and teaches them necessary life skills to be an adult.”
Pay Off High Interest Credit Card Debt
If you consistently carry $20,000 in credit card balances and the average interest rate on those accounts is 29%, you’re spending a whopping $483 in interest every month. That means you’re paying $16 a day to the credit card issuers and getting nothing out of it.
If you already have cash in a bank account but you’ve been reluctant to tap it, change your way of thinking. You’re losing a lot more in fees than you are gaining in returns. So, consider using that money to pay your balances down. After you do, add the money that had been going toward interest back into your savings account.
You’re then ready to charge again, says Tony Steuer, author of “The Get Ready Blueprint: A 52-Week Guide to Changing the Way You Think About Money.”
“But pay your credit card balances in full when they’re due. You don’t really need to give anything up, just consider how to be more mindful with how you spend your money. Seek balance,” he adds.
[14 Easy Ways to Pay Off Debt]
Switch to SAVE for Your Student Loans
If you’re having trouble making ends meet — much less save even a few dollars — because you’re overburdened with high student loan debt payments, you may have an option that can free up some cash.
“Switch to the new SAVE repayment plan on your student loans,” says Bryan M. Kuderna, certified financial planner and author of “What Should I Do with My Money?: Economic Insights to Build Wealth Amid Chaos.” source:
This new federal repayment SAVE plan calculates payments based on your income and family size instead of your loan balance. After a certain number of years the remaining balance will be forgiven, too.
If you’re eligible for this plan, route the extra money that had been going to your loans into savings: It can benefit your finances as well as your credit.
[Survey: Student Loan Borrowers Brace for Financial Uncertainty in Repayment]
Enjoy Your Savings
Even with the methods that seem simple on the surface, saving $15 a day is still work. You’re changing habits and making adjustments.
Keep tabs on how much money you are accumulating in your savings account. Eventually, you will want to have enough to cover your essential expenses for a few months in case of an emergency. Once you hit that target, use what’s left for something fun you’ve been hankering for. Celebrate your success. You deserve it.
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How to Save $15 a Day originally appeared on usnews.com
