How to Save When Living Paycheck to Paycheck
Regardless of what generation you are part, you should consider “paying yourself first” as a part of your savings plan. I first heard this concept listening to a podcast with Rachel Hollis and Dave Bach the author of “The Latte Factor” ( you can listen to this here). It was really eye-opening to me, and I love how easy this is for people in any stage of life to try for themselves!
Essentially, this strategy asks you to save one hour of your pay rate in a savings account per day. For example, if you make $15 an hour, you would save $15.00 every day… which adds up to $105.00 a week. If you were able to consistently do this over a year you would have $5,460.00 in savings, which is almost a $1000.00 over what the average US household has in their accounts! So often, the idea of saving is hard for people who may be living paycheck to paycheck. And even for those who may not be, it’s easy to spend money on things we may not necessarily need, instead of saving those hard earned dollars. But when you pay attention to what you’re spending on, and make spending just a few dollars a day on paying yourself first, it’s amazing what that can add up to over time!
Breaking savings down into easy daily goals takes a little bit of discipline but overall I don’t think it will change your lifestyle, especially when you really analyze how much money we are spending without even realizing it. I go into depth on “easy spending” in today’s Money Tip. I do use Millennials as the example, but please note that these ideas really can make a big difference for anyone, and there are valuable takeaways in here along with a giveaway!
Yes, I said GIVEAWAY!!! For the first ten people who leave a comment on this video on YouTube, we’ll send you a hard copy of Dave Bach’s new book “The Latte Factor”. I really believe the concepts he talks about in this book can have a big impact, and I’m excited to share them with you. The goal of all our Money Tip shows is to share practical ways for anyone to save, find, and keep financial security, so be sure to like, comment, and subscribe on our Youtube channel!!
I appreciate you reading this and tuning as always. You mean the world to me!
Make it an awesome week!