Sometimes, saving money may seem almost impossible to do. You buy groceries on Monday, pay bills on Tuesday, and by Wednesday your paycheck has disappeared until you get paid again. And if you’re like most American families, you wait for “extra” cash to come in so you can save it. However, by creating a budget or financial plan, most people find they can save some dollar amount regularly, and ultimately reach their long term financial goal.
When first starting, the amount of money you save is less important than the fact that you’re starting a habit to save regularly. It’s O.K. to start out small, even really small (say $5), but make the amount you decide to save each day, week, or month a commitment. You must continue to “pay yourself first” in order to get ahead in life. Begin with an amount that you are 100% sure you can live without so that you can continue building your habit on a sense of accomplishment. Giovanna Masci, money management expert at ACCION, suggests the following tips to establish a savings plan.