how to save $1000 Archives - SavingAdvice.com Blog

The Importance of Saving

You may be thinking, “So, what? Why do I need savings?” Well, saving money is extremely important for securing a stable financial future. Having money saved can come in handy for big purchases, investments and, of course, retirement. The most important savings account to get started, however, is an emergency savings.

Emergency Savings

Having an emergency savings fund is key to being financially sound. As you may know, the smallest change can break you where cashflow is concerned. Let’s say you lose your job or are demoted for some reason, having a backup stash of money to cover your necessities until you stabilize your finances can make a world of difference. So, let’s find out how to save $1000 while living paycheck to paycheck.

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How to Save $1000 When Living Paycheck to Paycheck

Deciding how to save $1000 when you don’t have much cashflow to begin with is difficult. There are some things you can do to save $1000 (or more) while living paycheck to paycheck though.

First, you’ll want to open a savings account. For many people, having a separate savings account (not joined with any other account you have) helps build momentum for their savings. When you’re choosing a new savings account try and select one that is more difficult to withdraw from.

Next, take a good look at all of your expenses and decide where there can be money saved. For example, make sure you are getting the best deals possible on car insurance. If you find you can get a better deal, make the change necessary. You can also do things to trim down your electricity and water costs in your home, like turning off lights and shutting off the water while you shave. These small changes can help you save money each month that can go into your new savings account.

Lastly, try to create a new source of income (at least $40 per month). Many people take online surveys to make extra cash with Survey Junkie or other survey sites. You can also earn small amounts of cash doing tasks on Fiverr. This income will go directly to savings and will help you save $1000 faster than if you were working with your base income.

Maintaining Healthy Saving Habits

The most important part of managing to save $1000 on a tight budget is being able to stick to your new saving habits. Once you’ve established your new saving plan, stick to it (even once you’ve reached your savings goal). You can never have too much money saved!

Have you saved money on a tight budget? How did you manage it?

Everyone likes a good challenge, especially if it helps you save money. A recent study showed that two thirds of Americans don’t have enough money saved for a $1,000 emergency, however, with a little discipline you can have that amount of money saved in just 12 weeks using a set savings plan.

The 12-week savings plan isn’t as popular as some of the year-long savings plan because it is a bit more intense and requires you to save larger sums of money each week. If you are able to pull off this savings plan though, it is a great way to get $1,000 in your savings account in a short period of time.

12-Week Money Challenge

Saving $1,000 is no small feat and doing so in 12 weeks is even more of a triumph. No matter what your reason is for saving (vacation, growing your savings, etc) this savings challenge is perfect for a short-term savings goal. It will take a little buckling down on your end but it will be well worth it in the end.

The challenge requires you to save $60 or more each week. The first week starts with you saving $60 and then $75 the second week, $95 the third week and $100 the fourth week. Week five you save $65, then $75, $95 and $100. You then save in that pattern for four more weeks and you’ve completed the challenge.

Photo: How Does She

How to Successfully Do The 12-Week Money Challenge

When you look at this savings challenge you may be thinking “how can I save $100 in one week or even $65?” It is possible! If you have a budget (which you should), go over it and decide where you can cut over the next 12 weeks. This is an aggressive savings plan so you will need to be aggressive in trying to make it work.

Here are a few things you may be able to cut and/or try to successfully save $1,000 in 12 weeks:

Limit eating out. You will be surprised how much money you will save by simply not going through the Drive Thru or going out to eat on Friday night.
Sell things you don’t use. Go through your closets and have a weekly garage sale during the 12 weeks. Whatever money you make at the garage sale put directly towards your savings plan.
Skip unnecessary expenses like pampering. If you go and get your nails done every week, skip that expense during the 12 week money challenge. You’ll be surprised at how much this will help you save.
Stay home. Instead of going out for your entertainment, stay in. You can have a game night, watch a movie or curl up with a book.
Find a free or cheap hobby. If you like to go shopping, find something else to fill your time like visiting local parks, going on walks or even a book club. This will help you successfully pull off this 12-week plan.

If you are looking to save $1,000 quickly or simply ready to buckle down and really start getting your savings on track, this 12-week plan is a great way to make that happen. While it is more aggressive than the 365 Day Money Challenge or the 52 Week Money Challenge, it is effective in helping people save and really take a good look at their finances over a 12-week span.

Zero Effort Money Saving Hacks

Saving money can be difficult but there’s an app for that! Digit.co is an app that makes saving effortless. It analyzes your savings account balances and then performs an automatic withdrawal into your savings. The Digit app is easy to install and, once you’ve activated it, Digit makes saving easy. Check it out at digit.co.

Photo: Flickr: 401(K) 2012