Updated: Oct 6, 2020
The COVID-19 pandemic is an eye opener for the need to have a savings plan. You may say "I don't have extra money to spare!" Well, let's take a deeper look. You don't have to be wealthy to start saving money. If you take a look at your current lifestyle, I'm sure there's an area that can be slightly adjusted. Let's say you put away at least 25 dollars each week. There's 52 weeks in a year, so 25x52 gives you 1,300 dollars. You can take the 1,300 dollars and place it into a savings account or a long term investment plan.
Here's an example of how someone can scrape up 25 bucks a week. Let's say you buy coffee five days a week at three dollars a cup. Multiply three dollars by five days (3x5) and you get 15 dollars spent. Let's say you eat out twice a week at 10 dollars a pop. Multiply 10 dollars by two days and you've spent 20 bucks. Now add 15 to 20 and you have 35 dollars.
Here's a plan for the above scenario. Take one week's worth of buying coffee ($15) and buy a large can of coffee from the store. That will most likely last you 2 1/2 weeks (give or take). Now, in the same week, take the 20 dollars you would have spent on eating out, and buy a pack of burgers, a loaf of bread, and a large bag of french fries from the grocery store. That should last you two weeks (give or take). Now to celebrate how smart you are for saving money, go ahead and treat yourself once or twice a month to that cafe mocha with a shot of caramel and whipped cream coffee. Or buy that super sized double hamburger meal on a cheat day : -)
The moral of the story is that you don't have to be rich to start saving money. There are small areas in your lifestyle that can easily be modified without making you feel deprived. Check out the money video below for ideas on how to save!
- Written by Dri with CvvEntertainment