Is Saving Your Money Becoming More And More Difficult for you?
Let’s say you, for whatever reason, constantly convince yourself that no matter what you do, you are not able to save any of your money, except the 10% you are already paying yourself. (I take it that you are now in the habit of paying yourself at least 10% first, before paying anyone else… Right?… Great!) Well, how about trying this easy method of “Weekly Savings In Paradise”?
What if you start a weekly savings plan with $1 in the first week, and then increase it by $1 each week thereafter. In other words, you will be saving the amount of dollars (or your currency equivalent) per week, which corresponds with that particular week of the year. Here is what I mean, in week 1 of the year (say the first week in January), you save $1.00; in week 2 you save $2.00; in week 3, you save $3.00; (you get the point)…until week 52 you save $52. By the end of 1 year you will have saved $1,378.00. (Please refer to the below table for further details.)
You might even be a bit more aggressive and double or triple or quadruple your weekly savings amount. So, if you start out saving $2.00, or $3.00, or $4.00 in week 1; and add $2.00 or $3.00 or $4.00 in week 2, and so on. In this case you will have saved $2,756.00 or $4,134.00 or $5,512.00 respectively, by the end of 52 weeks or 1 year.
For parents, this could be an excellent tool to use with your young working teens to encourage them to develop a savings habit and wealth mindset. Also, you can modify and tailor these easy savings tips, and use them with your preteens and teens to whom you give weekly or monthly allowances. They will thank you for this easy savings plan later on in life.
For everyone else who gets a regular weekly, biweekly or monthly paycheck, this could be a great way to start saving some extra cash for a more robust savings plan or to meet your discretionary spending needs. Taking tiny savings steps like these tend to lead to more profound savings habits and bigger nest-eggs. You might choose to use the funds to buy large ticket items, or to fulfill your miscellaneous shopping needs, or to buy birthday and holiday gifts. Most importantly, the funds you tuck away and save will help curb your desire to shop with credit cards, which might prevent you from getting deeper in debt. This type of savings habit can also help you establish and stick with a discretionary spending budget.
So, whether you choose to start your “Easy Weekly Savings Plan” by putting away $1.00 and increasing it by an additional $1.00 each week, (or $2.00, or $3.00, or $4.00, and adding $2.00, $3.00 or $4.00, respectively, each week) thereafter, we can all agree that this simple process promotes healthy savings habits. Healthy savings habits lead to good money management habits. Good money management habits lead to better debt control. Better debt control leads to less spending and more money in your pocket, which leads to bigger nest egg for your “Paradise Lifestyle”.
To your financial success, until next time….
Your ‘Lady In Paradise’