Save Just 1% More This Year

By David Ning, Founder, MoneyNing 

Almost everyone needs to save more for the future, but let’s get real - those people touting 15% or 20% savings just sound insane. I know what you're thinking, "where am I ever going to find 20% of my paycheck to save? If I had that kind of cash, I wouldn't be fretting about money issues in the first place!"

So forget trying to save 20%. Just try to save 1% more than you did last year. That's $500 for a household that brings in $50,000 a year, or about $1.39 a day. That's entirely possible. Are you ready to give this a go? Then try these simple tips:

Bank that raise. Many people get pay increases as they move up the ranks, but the economy is finally improving and most of us will at least get a living adjustment raise. Schedule the increase to go straight into an online savings account as soon as that paycheck gets bigger. You will never miss the increase, and before you know it, you'll have built a sizable stash.

Track your expenses and only keep services truly making you happy. No one ever wants to lower his or her standards of living, but the truth is that you can't possibly maximize your purchasing power by spending money willy-nilly. Is everything you are spending money on contributing its fair share to your happiness?

I was like everybody else and thought cable TV was an absolute necessity. But now that I cut the cord and joined an online streaming service via a free trial, I find myself not spending as much time sitting in front of the TV channel surfing and spending more quality time with my family. Of course, the $90 a month savings didn't hurt one bit either, because I now go out to eat with friends more often, enriching my life even more.

Stay on top of your finances. Once you build up that savings cushion, then it'll be easy to avoid paying overdraft fees as long as you monitor your accounts. Put it onto your calendar to check your balance so you know how much money you can spend, and make sure you add the credit card due dates on there as well to know when payments are due. Managing all this takes only a few minutes a day and if that keeps you from paying ridiculous fees to the bank, the time spent could be the best paying part time job you ever have.

 

1% more may not sound like much, and that’s precisely the beauty of this approach because you’ll find saving this amount easy. But keep adding 1% to your goal for a decade and you are all of a sudden saving 10% without even trying. Now imagine what you can save if you actually put some effort behind it by aggressively applying common savings tips and saved 2% more every year from now on.

Take the Pledge

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Take the America Saves Pledge

Tip of the Day

  • Written by Katie Bryan | November 25, 2013

    Tip to #save when shopping: You can #save more than 10% by comparing prices at different stores.

Saver Stories View all »

Jump-Starting a Financial Makeover

Written by Katie Bryan | October 28, 2013

Nichelle Johnson, a single mom with two teenage children, knows what it’s like to stretch a dollar. When she moved back to Virginia Beach in 2008, she provided for her family with just a part-time library position.

Read more...

Taking Back Control Over Finances

Written by Virginia Saves | August 5, 2015

After becoming a Virginia Saver and getting help from BankOn classes and coaching, Nadine Bialo took back control over her financial affairs.

Read more...

Saving Early: Key to Successful Future

Written by Katie Bryan | October 28, 2013

For Johnnie Lovett, a Young Illinois Saver, saving has been a habit since he was a teenager. “As a teenager, I was responsible for buying certain things with my allowance,”

Read more...

Receive Updates

Sign up for Texts

Written by Tammy G. Bruzon | July 15, 2014

Sign Up

Sign up for Emails

Written by Super User | September 16, 2013

Get Emails

Take the Pledge

Written by Super User | September 16, 2013

Start Saving