We hear you. This is the year you’re going to save $5,000 every few months. While everyone loves to start off the new year with a bang, might we suggest something simpler? After all, the reality is that about 70 percent of adults have less than $1,000 in savings, and 34 percent have absolutely zero socked away. Here’s some tips to save that first $1,000. Start there, then go ahead and dream big.
• Budget first. According to CNNMoney, only 41 percent of adults use a budget. Since there’s really no way to pad your savings without knowing how your income and expenses break down, it’s time for you to create a detailed spreadsheet.
• Trim the fat. Once you have your budget set, you’ll be able to clearly see where you can cut spending. Ten dollars here, seven dollars there. Suddenly, you’re able to put an extra $50 away per month.
Narrow the options. An easy way to stockpile cash is to make deposits from your paycheck automatic, that way you have no choice but to save. Each month, automatically stick about 10 percent of your income into a savings account. If you can’t do that, try for $84. That way you’ll hit that $1,000 goal in a year.
• Clear the clutter. You likely have some items sitting around the house that you no longer use, so why not sell them? Get that winter jacket you wore once out of your closet and put it on eBay. Haven’t taken the mountain bike for a spin in more than a year? Put that sucker on Craigslist. Sell anything you don’t need and put that money toward your $1,000 savings.