The Fed’s 2019 Survey of Consumer Finances shows that the typical American household has $5,300 in a savings account at a bank or credit union. But, this number varies greatly by age and number of people in a household. Lesson 1 discussed the 50/30/20 framework. 20% of income should be going towards debt AND savings. The amount you will be able to put into savings will vary depending on your income and budget. For example, if your income is $2,000 a month then ideally you should try and budget $400 for debt and savings.
Ideally, it would be great to have separate savings from your emergency fund. This doesn’t always happen though because life happens and budgets can be very tight. There are ways though to help yourself slowly build your savings.
Automate Your Savings
You can automate your savings by having your bank automatically transfer money when your paycheck is deposited to a savings account. There are also apps that round up your purchases, such as Digit, to put aside savings. Whichever method works best for you and your lifestyle can help you save.
Check For Unclaimed Money
When’s the last time you checked for unclaimed funds from the government? It’s not a guarantee, but it is a good idea to periodically check.
Is starting a side hustle or a second job reasonable for you and your situation? A hobby can turn into a little business that could help you make some extra income to put into savings.
Do you have unused items around the house? Selling items through Facebook Marketplace, Craigslist, eBay, and other reputable sites can be a great way to clean up your house while also making some extra money to put aside.
Put Aside Extra Cash
Do you get a tax return or a bonus at work? Try to put aside at least a percentage of that money into your savings account.