For many years I struggled to build a savings account. I always thought that I just did not have enough money. I was right and yet I was very wrong. You see saving money requires having money but it also requires discipline with the money that you do have.
For years I have lived paycheck to paycheck barely getting by. Many years spent trying so hard just to pay down debt while simply paying basic living expenses. My husband and I both had decent-paying jobs and yet for some reason saving money never seemed possible.
What I discovered about why I could not save money
My strategies always seemed to fail and I would end up right back where I had started. Why could I never save money? I believe it's because I always saw it as impossible. I never broke it down to see that small changes over a long period are more important. If you think of this in terms of weight loss which the concept is very similar, small lifestyle and diet changes leading to one pound a week after a full year would be 52 pounds. That weight loss is life-changing! Small financial choices and changes in your budget can bring about similar results.
A money-saving challenge that helped change my finances
About 4 years ago something changed when a coworker mentioned a money-saving challenge she was working on. There is nothing magical about this challenge, in fact, it still required me to save money and avoid spending it. The challenge started very small in the beginning and became almost like a game for me. You start as low as a dollar a week and build slowly on that throughout the year. This was the first time I found something that worked for me because it caused me to commit to consistently save and allowed me to watch it grow without hurting my budget. I was amazed that as the year progressed I wanted to save more. I realized that I no longer wanted to touch the money I had worked so hard to build up. I was proud of what I had saved and I liked the feeling of security that came with having that money just in case.
So why did this money-saving challenge work for me?
I found the savings challenge fun and easy
Saving money no longer hurt when I started with a small amount
I finally saw how a savings account or emergency fund could benefit me
After a little while, I started hating to see the money go down in my savings account. This made me no longer want to spend it on anything.
From the very first year this savings came in handy as a cushion to get me through to the next paycheck. If money was a bit tight from one paycheck to another I could borrow from this money instead of using a credit card or accruing fees at the bank due to a dreaded overdraft.
Why I highly recommend using a money-saving challenge
Starting this savings plan and continuing it was the best thing that I have ever done for myself. With the 52-week money challenge the result each year is $1378 at the end of that year. My husband and I did have to dip into my savings account a few times since I started my emergency fund. This past year we had to purchase a new vehicle when our old vehicle became too costly to repair. We used a portion to pay for a down payment on that vehicle. It was a blessing in this situation to have some money to make a down-payment to help keep the costs more affordable.
What starting an emergency fund has taught me
What I have learned through this experience and from starting my first emergency fund is this... a savings account or emergency fund is not only necessary but it sets you free in many ways. When you have some savings built up you are no longer a slave to debt. Not having to use a credit card towards unexpected expenses is such a great feeling.
My final thoughts…
I know saving money is hard especially when you already feel so burdened by debt. However, if you are wanting to make a difference in your financial situation you need to do something different for a change. Give a money-saving challenge a try starting this week. Two incredibly important steps in getting out of debt are beginning your emergency fund and starting a budget. If you do not have a good plan for your budget yet, my friend Sarah over at Lemon blessings offers some help beginning your budget here.
