How to Start a Small Savings When You Live “Paycheck to Paycheck”

Like many people in this economy, my husband and I live “paycheck to paycheck”. We used to have no savings. I decided enough was enough and started saving what I could. There are some very good reasons to have a small savings for emergencies. One being that it takes a lot of stress off you in case of things that happen to all of us like a car breakdown, a travel need for family emergencies, last minute gifts, unbudgeted for bills and so on. If you have a small fund for these things, it won’t even need to eat up any of your paycheck in case you run into an extra expense. The key is to not see it as extra money to spend, but money for emergencies.


Here are some creative ways to get a few extra bucks to save a bit aside:

  • Get a “piggy bank”. Seriously. My husband and I save all change we get, even the pennies. You would be surprised how quickly it adds up and since it is all in change, it is less tempting to spend.
  • Sell your unneeded stuff on eBay and put any profits into this savings.
  • Look where you can “trim the fat”. For a short while, put this money in your savings. For instance, my husband and I both smoked. For a short while when we were quitting, we put the money we would normally spend into savings.
  • Actually come up with a budget. You would be seriously surprised where large chunks of your money are going. That latte you get every day? if you get one at $3 every day, 5 days a week, you have spent over $60 a month on coffee. Make time to make coffee in the morning and you can put that $60 a month into savings and not feel a change in your budget.
  • If you can in your area, recycle. Even that 5-10 dollars you get a couple times a month will add up.
  • Clip coupons and for a period of time, put half of your savings on items into your fund.

I wish you luck in your savings endeavors!


Photo via flickr by Tax Credits

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