How to save money without realizing it

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Saving money sucks. The idea of saving for a very distant future is hard to swallow when money is scarce. However, when unexpected expenses hit such as medical bills, car problems, traveling, special occasions, etc., that cushion can come in handy. In her book, Rich Bitch: A Simple 12-step Plan for Getting your Financial Life Together…Finally, Nicole Lapin explains some of her tricks to saving money. The best time to start saving is today, so here are some tips to save easily.

Save 10 to 20 percent of your paycheck

No matter how small your paycheck is, aim to save 10 to 20 percent. It doesn’t seem like much, but it will accumulate over time. If you receive a $300 paycheck every two weeks, you could save $30 every paycheck. After a year, you will have almost $800 in your savings account. If you work more and end up with a little bonus money, put half of that money into your savings account and use half to reward yourself. This practice will make savings increase quicker as well. The best way to do this is by setting up your direct deposit to feed your savings account. However, if your direct deposit is already set up to feed your checking, you can transfer the money manually by using your bank’s mobile app or website. Keeping your savings in a checking account can be tricky because it is more accessible, and you are more likely to spend the money.

Consider sub-savings accounts

A sub-savings account is nestled within your main account. These sub-accounts will help you designate the money in your account to specific needs. For example, you can have a sub-account for a new home titled “New Home” and you can designate a transfer of $20 from your savings to that sub-account every month. You can also have one that is for “Car Problems” that has a fixed amount of $500. These accounts are a way for you to organize your money to cater to your needs.

Don’t underestimate your piggy bank

Nowadays, large amounts of cash aren’t really used. However, every time we come across cash,we tend to spend it first. Have a piggybank or jar where you put extra cash and change you find. You will see it is a lot more money than you think. This fund can be for rainy days, to reward yourself or for whatever you want. Money is important, but so is being ready for any challenges you face. Saving a little money now can help you immensely in the future. Start right now. Do something today that your future self will thank you for.

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