According to Go Banking Rates, 68% of Americans have less than $1,000 in savings.
Thirty-four percent of Americans have no savings at all.
Chances are, if you are reading this and live in the US, you can relate. I know we can. Almost a decade ago, we were deeply in debt and had less than $1000 in savings.
The good news it is relatively easy to save $1000 FAST. In fact, we think you can do in ONE MONTH. We will show you the EXACT STEPS we took to build a small emergency fund of $1,000 in one single month.
With a little creativity and discipline, you can save $1,000 FAST!
Here's how we did it.
USE WHAT YOU HAVE
The quickest way to save $1000 fast is by using the income you already have. It may not seem possible. You may feel as if your income is not enough to pay your bills AND save. We understand.
But take a look again. Look at your debit and credit card receipets. Do you really know where your money is going?
When we were looking to save $1000 FAST and pay off $18,000 in debt, we looked to our spending first. At the time our income was low and infrequent, we still found lots of areas of spending that we could cut back on.
Here are some things we found:
Going out to eat 2 nights a week - saved $400 / month
Cutting out cable bill to internet only - saved $200 /month
Canceling the gym membership with never used - saved $60/month
Using a money saving meal plan and shopping at Aldi - saved $ 400/ month
using coupons to purchase personal care items at the drugstore - saved $100/month
Just by doing those 4 things, we saved $1000 in cash in ONE MONTH! Crazy right?
Here are some other ideas for cutting spending: (based on average spending. your savings may be more or less!)
Stop buying cereal for breakfast. Serve smoothies, eggs, or oatmeal instead- Saving $60 / month
Mow your own lawn - saving an average of $ 150 / month
Make your weekly pizza instead of buying saving an average of $160/month
Find ten pieces of clothing in your closet that fit well and create your own mini- capsule wardrobe. Don't buy any more clothes this month. Repeat this process with your kids too! - saving an average of $200/ month
Make coffee at home - saving an average of $50/month
Rent a movie instead of going to the theater - savings $50
Cutting your spending to save money is less about strategy and more about getting organized. Many of our money habits are linked to our organizational habits. If life is chaotic and I am not paying attention, money flies out the door.
Set up weekly rhythms to keep your spending organized. A money-saving meal plan emailed to you every week is a great way to get your grocery spending organized and under control. Using cash for weekly spending instead of credit (or debit cards) is another tool to keep you on a budget.
Schedule a weekly check in with your spending. It should take no more than 5 or 10 minutes! What areas are we on track with? What areas did we overspend in?
Set a time each month to purge areas of your home that are cluttered. We often purchase things we already own because we forget we already bought it!
I am constantly testing out trying new ways to create daily, weekly, and monthly rhythms that help us organize our world. Seasons change. Especially when raising kids, so be flexible! What works today, may not work 5 years from now. Keep learning!
Remember, our journey with money is a marathon. Stay committed. Keep growing. You can do it!