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When working on your savings goal, it’s okay to start small.
Key Point
- With the high cost of living, saving money may seem impossible.
- Starting with a small savings goal is better than not saving at all.
- Saving $25 a week for 52 weeks would require $1,300 for emergency expenses.
Many people plan to secure more money in their savings accounts, but continue to postpone their goals. If you’re holding back on saving because money is tight, you’re not alone. But keep in mind that even small savings can make a big difference and set you up for future spending. Find out how much money you could save if you committed to saving $25 each week for the next year.
Every dollar saved makes a difference
Inflation is rampant, the cost of living is skyrocketing, and when salaries are already stretched thin, saving money can feel impossible. Many people assume they don’t have enough extra money to save. If you keep postponing your savings goal year after year, you’ll have a hard time dealing with emergency expenses that arise.
Not everyone can reach their massive savings goals, and that’s okay. But starting somewhere is essential. Saving even a few bucks a week is better than not saving at all. Reaching your savings goal will take time, but you’re making good progress.
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The Importance of Emergency Funds
An emergency fund is a valuable financial tool. Unfortunately, many Americans don’t have one. You never know when an unexpected vet bill, car repair, or home maintenance job will come your way. Having an emergency fund reduces the stress of dealing with these situations.
Ideally, it’s best to keep at least a few months’ worth of daily expenses in an emergency fund. But even a small emergency fund can help in the event of an unexpected expense. As you work to build your fund, don’t be afraid to start small.
If you struggle to save regularly, automating the process can help. You can set up automatic transfers from your checking account to your savings account. Some prefer weekly savings, while others prefer bi-weekly or monthly savings schedules. do what is best for you. Doing this will disable potential forgetfulness and save you time.
The $25 weekly savings add up to:
So you want to start saving, but don’t have a lot of extra money? If you can afford to allocate $25 of your weekly budget to savings, your savings account balance will grow faster than you think. If he commits to setting aside $25 each week for a year, he will have $1,300 in the bank. That’s a lot of money and much better than saving $0.
Storing excess cash in a savings account also earns interest. Many banks now offer competitive interest rates. If you don’t have a savings account yet, check out our list of the best high yield savings accounts to find the right one for your needs.
Never give up on your financial goals
As the cost of living rises on a daily basis, many of us are feeling even more stressed. But it’s important to stay committed to your personal financial goals. If you have the determination to save more this year, start with small goals and make them happen. Savings of $10, $20, or even $25 a week are impressive.
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