Starting a savings plan can be difficult. There are a lot of other factors that get in the way, making it more difficult for you to set aside small amounts whenever you can.
What you need to start and keep saving, is the right motivation. That’s what we’ll discuss with you today. The $1,500-challenge can help you kickstart your savings. To help you get started, here are a few tips:
When you think about $1,500 in three months, it sounds a lot. If you do the math, you have to save at $500 a month, that means $116 in a week, or $16.50 saved per day to stay on course for your target of $1,500 after three months.
Now that you know the breakdown, you can then focus on saving $16.50 per day instead of $500 a month, which should be a lot easier.
Now that you have an idea of how much to save per day, the next step is eliminating unnecessary expenses. It could be something simple like packing your lunch for work instead of buying from the corner store, or saving on utility bills by conserving water and electricity.
Go over your daily and monthly expenses, and determine which activities are luxuries. It can clear up some of your money, and you can redirect it towards more important things like your grocery and savings.
A lot of people think that saving money means having to sacrifice. Well, that’s true. You need to sacrifice a little bit to achieve your goal, but you can always compromise.
For instance, some people like to treat themselves at least once a month. There’s nothing wrong with that, in fact, it can be useful for your mental health and wellbeing.
Instead of going out during the challenge, why not spend an evening with your loved ones and watch a movie together? Netflix has an impressive selection, and it guarantees to have something for everyone.
If you don’t have Netflix, you can always go old school and watch an old DVD or Blu-ray of your choice.
Perception is everything. To be successful; you need to save $16.50 per day. If you’re still on the fence about that, you can do a shorter 13-week trial instead of the 52-week challenge.
It works along the same principle as its longer relative, but instead, you save $1 on the first week, $2 in the second week, and so on. Following this pattern, you’ll have a total of $91 by the end of 13 weeks.
To achieve the $1,500 goal, save according to day instead of a week. That means $1 for day 1, $2 for day 2, and so on. If you do this for 90 days, you can expect to have saved up to $4,186. An amount more significant than your original target.
Another way to go about the challenge is setting up a separate bank account and transfer $20 a week from your savings account. It’s fast, comfortable, and you don’t have to keep it in mind. All you’ll get is the weekly notification that you transferred $20 to your savings.
Together with keeping a piggy bank and cutting down on other expenses, the $1,500 goal becomes more bearable.
This challenge aims to help give focus to those who just can’t seem to kickstart their savings no matter how hard they try.
Once you’ve finished the challenge, you can then use your savings however you please. Whether you save it up or put it towards a much-needed purchase, such as a car lease, there are many benefits in having a contingency plan.