Time for another version of Financial Tip Friday. Sorry I have been away for a while, but I have been doing other writing and took a little break. But I am back and I have some fun posts coming up in the next few months. So here is my latest Financial Tip Friday.
Let’s face it many Americans are struggling. More than 70% of Americans live paycheck to paycheck, including Mrs. ROB and myself. In a recent survey, 50% of Americans say they couldn’t handle a $400 emergency. Much of America doesn’t have any emergency savings at all. People say they can’t save because they can’t afford it.
I think that is partly true. I think a lot of people spend every dime they make. Then there are a lot more people who I think make different choices and without thinking spend money they have on things they don’t need (e.g. lattes everyday). I don’t mean to bash them. I mean I indulge in a probably two to three sodas everyday that probably cost me at least $2 or more. And I don’t bring my lunch from home with me all the time. So I am just as guilty when it comes to frivolous spending.
So how we can turn this around? How can we get people to save, but at the same time maybe think they aren’t depriving myself?
Answer: The 52 Week Savings Challenge.
I must admit that I heard about this idea from my fellow blogger Ceceilia over at The Single Dollar (a great blog by the way). She is taking the challenge and because of it will save over $1300 this year just for her emergency fund. So I figured I would try the same thing. Why not? It can’t hurt.
This savings challenge won’t make you rich, but it can maybe be at least a start to better enhance your emergency fund in case some $400 emergency hits.
How It Works?
The challenge is pretty simple. Every week you save a small amount of money. Here is how it goes. The first week you save $1. The next week you save $2. The week after that you save $3. By the time you reach the end of the year you are saving $52 per week for a grand total of $1378.
Of course you need to deposit this money in a savings account or something where you can’t get at it. Don’t use your checking account. Set up an online bank account. Typically, transfers to the account are free. Every week just transfer that week’s amount into your savings account. That is what I am going to do. I transferred this week’s first dollar already.
Or buy a piggy bank or whatever but let’s start the challenge.
Make this a game. Within the year I am sure many of us could save that $52 in a week, maybe more because we have gotten used to saving.
So what do you say? Take the challenge with me? And if you don’t are you saying that you can’t spare $1 in your first week?
What is more important your family’s emergency savings or your cup of coffee? Sometimes it does come down to that choice.
So I have started the 52 week challenge. Come join me!!!!