Liz Pulliam Weston, author of a must-read new personal finance book, The 10 Commandments of Money: Survive and Thrive in the New Economy, has a no nonsense approach to savings: She says all it takes to break free of the paycheck-to-paycheck loop is having five hundred bucks set aside. And you can save that this year, maybe by summer. Here’s how:
1. Do the savings sweep. Take whatever cash you don’t 100% need right now—whether it’s in your purse or in your checking account—and sweep it into your savings.
2. Always save at a bank or credit union that is NOT linked to your checking and NOT linked to an ATM card. Open that stand-alone account now.
3. For one month, or the rest of this one, buy ONLY necessities. You’ll be amazed how much cash is left over.
4. Earmark some or all of your tax refund for savings (hint the average refund is $2,000!)
5. Make one big move: quit smoking, ditch drinking, give up the second car, give up the gym, don’t buy clothes, don’t eat out—just until you hit the big 5-0-0.
Yes, these are simple tips, but ones that are often overlooked. Let's all start living without our needs.
Savvy Saving,
