How To Save $1000 A Year
Making use of separate checking and saving accounts with automated transfers can set you up to have healthy nest egg in a few years! After you get your first $1000 continue the process and build a healthier future.
Saving money has the ability to alter your personal future and that of your family, but it can be difficult to start on a strained income. Regardless of your current earnings this process will help you generate over $1000 in savings over the course of a year. Keep in mind that the steps outlined below can be scaled up to generate several thousand dollars a year.
4 Simple Steps To Generate $1000 A Year
- Create A Savings Account
- Set Up A Recurring Transfer For $3.00/day
- Let The Transfers Collect For One Year
- Continue The Process
*** Raise the rates each year for increased savings
Automated Savings
A daily transfer to your savings account has a negligible impact on your day to day expenses. Rather than taking $100 dollars out of your account at the end of each month, the automated payments make that amount much more manageable. Knowledge that you are putting money aside each day will also alter your perspective on saving and reinforce the idea that you should pay yourself first. Paying yourself at the start of each day can make sure that you reserve your piece of wealth before you divvy up the rest of your income on expenses.
Establishing this transfer will also lead you to keep a better eye when tracking expenses day to day. Monitoring the account expenses will allow you to move the money aside with certainty and through this you will develop skills of money management. Consider that on each day you’ll need to transfer $3 or $21 for the week. So if you’re thinking ahead you’ll want to maintain a balance above $21 each week while also generating that amount for the following week. Over time this should become second nature. Simply scale up the numbers as you set higher savings goals and stick with your system.
Long Term Goals
Now that you’ve learned how to save $1000 a year, you can work on wealth long term. Starting this habit will lead to great returns in the future when combined with other practical savings habits. You can test the limits of this model within your own budget and push to save $50 a day leading to nearly $20,000 in savings at the end of a year cycle. Wether you are building an investment fund, saving for college, or putting a way for retirement, this pragmatic approach can help you reach your goal with ease.
If you’re wondering why saving is important read this article!
