For some people stashing away money can be a breeze, while for others attempting to save money can feel like pulling your own teeth. This became evident as I saw others around me who are equipped with the knowledge to improve their financial circumstances but fail to carry out the steps necessary to accumulate savings. If you are someone that feels saving is a daunting task. I’m here to tell you it is not.
At the end of the day, you just have to do it. My belief is that the process may be the biggest problem that most people have. It comes down to behavior. In order to develop good behavior when it comes to improving your finances it is best to start small. If you really have a hard time saving, begin with $5 per pay period. Whether it is a nice crispy Abraham Lincoln note, five one dollar bills or 20 quarters, make it happen! This will leave you with either $10 or $20 at the conclusion of the first month.
If you can do this for three consecutive months, you will have accumulated between $30-$60. No large sum by any means, however it is a building block. If you happen to be stuck in the mud, the aim is to build the confidence to make greater progress on your financial journey in the future. At the start of month number four, challenge yourself to double your $5 contribution to $10 per pay period for the next three months. At the end of these next three months you will have between $60-$120 dollars saved.
Following this same pattern double your contribution again, now saving $20 per pay period, which leaves you with between $120-$240 saved at the end of the next three month interval. If you follow this trend for an entire year you can accumulate between $450 and $900 in just one year. Less than half of all Americans have less than $1000 saved. If you can manage to start with just $5 per pay period you can be half way there just by following this formula.