When you’re drowning in debt, placing money in a savings account may sound counter intuitive. But this amount will help shield you from most emergencies while you’re busy paying off your debt.
Your first financial goal is to put $1,000 aside as a starter emergency fund. Yes, that will not cover the transmission going out, but it will help lower stress knowing you have a little cushion to protect you from life’s unpredictable emergencies. Multiple surveys show that 50-75% of households do not have at least $1,000 in savings. Let’s not be one of those statistics. To help you get started on saving $1,000 for emergencies, here are 10 ideas to stash that cash and have more peace with your finances.
$400 Donate Plasma
It may not be on the top of everyone’s list, but donating plasma is a feel-good thing to do while earning cash! It saves lives and you can even read a book or scroll social media while earning money. You’ll typically earn $50-75 per session and typically there are significant sign on bonuses during the first month upwards of $1,000.
$600 Second Job
Saving $1,000 in one month can seem like a daunting task. But, if you add a side hustle, you’ll be well on your way to that $1,000 figure in your savings account. Just working an extra 10-15 hours per week making $13 per hour, you can make up to $600 per month.
$300 Reduce Eating Out
The average household spends $200 – $300 per month eating out. In fact, my average client spends $500 per month eating out, before getting on a budget. Simply swap your eating out nights for a slow cooker meal or other quick meal at home and you’ll save hundreds! Challenge yourself to do it for one month – you can do it!
$100 Brew Coffee at Home
If you’re a regular at your local coffee shop drive thru, you know that habit really adds up. Brew your coffee at home for a full month and you’ll see the savings add up to the tune of $60 or even $100 if you grab your joe at a coffee shop every work day. Look up quick and easy recipes online to recreate your favorite coffee shop drinks.
$200 Avoid Convenience Store Shopping
Does your daily routine consist of grabbing that pizza or energy drink at a gas station? The average person spends $5-10 per trip at convenience stores. That adds up to about $200 per month if you purchase something five days a week. Instead, buy your favorite drinks and snacks at a grocery store to use during the month when you’re on the road.
$60 Shop Insurance Providers
Are you still using the same insurance provider your parents did? Or are you using the same one since you landed your first job after college? If it’s been a few years since you’ve shopped around for an auto and home insurance provider, now is the time to comparison shop! On average, my clients that switch to an insurance broker will save at least $400 for a 6 month policy. Click here to see who we recommend.
$140 Cut Subscriptions
It’s time to get serious and cut the fat off all your subscriptions. Every year, consumers are increasing the amount they’re spending per month on subscription services. Recent surveys show the average consumer is spending $273 per month on subscriptions. That’s $3,276 per year! Make a list of all your subscriptions and cut out any you rarely use or that overlap.
$260 Buy Generic Groceries
If you buy all name brand foods at an upscale grocery store, switching to a discount store like Aldi can save you 40% on your monthly food bill. For the average family of four, that is a $260 savings per month. That’s some significant bang for your buck saving over $3,000 per year.
$250 Adjust Your Tax Withholdings
Do you receive a large tax refund every year? That may sound like a good thing, but the truth is you are loaning the government YOUR money at 0% interest all year. Talk to your tax pro or go to the IRS withholding calculator to increase your withholdings to have more money during the year to save. The average tax refund is $3,025 in 2022. That is a lot of your money you are letting the government use interest free. Put that money to work for you, not the government. Need a tax pro? Email Justin for recommendations.
Sell Stuff
One guaranteed quick way to put money in your pocket is to sell items from your house that you no longer use. Look through your closet or garage for things that are gathering dust. You’ll be surprised at how fast the money adds up.
Why Stop There?
Once you have your $1,000 savings account filled, why stop there with the savings? If it wasn’t so bad donating plasma or brewing coffee at home, why not continue some or all of the suggestions indefinitely? You can use your new freed up money to go towards paying off debt.
Strong Tower Consulting Can Help!
Unsure of how to gather $1,000 or what to do next? Contact Justin to meet for 30 minutes for guidance on how to accomplish your next financial goals.
