What are the best ways to start saving money?

[james.hendrickson]

Guys,

There are usually hundreds of lurkers here on the forums, many of whom come here to get help saving money or help getting motivated to improve the financial situation. For their benefit, lets post on the best ways to start saving money if you have no savings and don't know how to get started.

Here are two thoughts:

1. Set a modest achievable goal. A savings challenge (like the 52 week savings challenge) or a dollar target (say a $500 emergency fund, etc.) are great ways to structure your savings.

2. Automate your savings. Consider setting up a direct debit from your checking to your savings account or use software like digit.co, which automatically deducts money into to your savings account based on your spending patterns.

[TexasHusker]

Start going to the coin shop and buying two 1 oz. silver American Eagles per week. You are effectively dollar cost averaging as when silver is down, the coins cost you less. In a year, you will have around 7 pounds of pure silver, and you won't spend it.

The next year, try to buy 3 coins a week, etc.

When the price of silver goes up, simply take your loot down to the store and sell it back for a profit. You won't have to report it to the IRS because it's all cash and there are no 1099s.

Rinse, lather, repeat.

[GoodSteward]

Start going to the coin shop and buying two 1 oz. silver American Eagles per week. You are effectively dollar cost averaging as when silver is down, the coins cost you less. In a year, you will have around 7 pounds of pure silver, and you won't spend it.

The next year, try to buy 3 coins a week, etc.

When the price of silver goes up, simply take your loot down to the store and sell it back for a profit. You won't have to report it to the IRS because it's all cash and there are no 1099s.

Rinse, lather, repeat.

Wow, I never thought of that. I give you an A+ on this.

[clatoden99]

Develop a realistic budget, that includes a small savings deposit, and stick to it. While developing the budget, examine your current cash outflow, looking for ways to reduce the larger line items where possible. Much of what you spend is based on WANT, not NEED.

[Jluke]

To save: open up a savings/money market account at a different financial institution (i.e. CapitalOne) from where you do your primary banking. (i.e. Credit Union).

Deposit a set amount in there each month (considered an expense in your budget for forced savings) and develop the mindset that money always goes into that account; it does not come out.

[smartspiritualincome]

I love this post, mostly because I get excited about hearing how people are saving (we are focusing on wins and positive thinking). My experience has shown there are a number of ways to build a savings, but these are the most effective.

1. Create a budget - This is the key to saving money! Track your cash flow for at least the past 3 months to see where your money is going each month. Then simply make adjustments to tell your money where you actually want it to go. Be intentional about saving at least 5-10% right off the top until you have at least $1K because things often come up that we could never anticipate (repairs, medical expenses, etc.). Spending a little time up-front will pay off tremendously because your money will actually work for you instead of the alternative.

2. Find the right job for you/ask your boss for raise/get a new job/make money on the side - Are you currently employed? If not, I would suggest that you first find a place of employment. If you don't want to work for someone, then try freelancing and earn an income doing something you enjoy. There are many ways you can do this.

If you are employed, are you content with your current position at work? Don't be afraid to ask your boss for a raise, just know how to do it without seeming angry or desperate. Find out the best ways to make your boss' job easier and position yourself to ask for a raise. Good things are likely to happen.

If a raise simply isn't a possibility, then you can try to make some quick money on the side doing something you both enjoy and are skilled in. This can range anywhere from mowing lawns to washing cars to website designing. Get creative here, there are no wrong answers. The key is to enjoy making money and maintain that positive energy to save.

I hope these were helpful. There are many more possibilities, but these are some that have stood the test of time and proven to be successful. What are your thoughts? Please provide some feedback.