5 Small Changes That Save Me 20% Of My Income

Here are the lifestyle tweaks one woman made in order to put her savings on autopilot. Want to learn to save even more? Check out this video:

Making it work is brought to you by wealth simple which gives everyone access to simple affordable investing on cruise control when i first graduated from college i went out into the real world with a minimum wage paying job i was living paycheck to paycheck and i would daydream about a day in the future when i would have more money i imagine saving would be effortless

Once i was earning this hypothetical higher income cut to a couple years later when i began working in an office and earning more but even six months into the job my savings account was still resting at less than five hundred dollars it turns out that i’m really good at spending money it’s not like i’m spending thousands of dollars on clothing or travel every month

But when i started earning more i gradually elevated all of my consumption i swapped my twelve dollar face wash for a thirty five dollar one i started buying lunch at work daily i would swing by nordstrom once a month and spend $200 on new clothes my spending increased with little conscious effort and although my income increased i was still living paycheck to

Paycheck over the past six months i’ve started taking a very critical look at my spending habits i want to reiterate how thankful i am to be making enough money to live comfortably and save every day i am grateful to make more than enough to cover my daily living expenses today i am saving at least 20% of my paycheck without feeling like i’m sacrificing anything

Important i’ve just reached my first milestone savings goal and i am genuinely confident that i will continue to save and reach new milestones here are the five shifts i’ve made to make this possible number one i read the book your money or your life although this book was originally published in 1992 it is still extremely relevant today it was the first source of

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Information that really opened my eyes to the true value of a dollar it reiterates the point that money is representative of your life energy not something to be wasted my relationship with money has evolved so much over the past year and i credit this book for kicking off that journey number two i started tracking my spending without judgment i would recommend

Tracking your spending in detail for one to three months don’t try to change anything just yet simply take an honest look at where your money is going when i first started tracking i used a manual excel spreadsheet and later switched to an app although it was a bit tedious it was very powerful to have to manually type out everything i purchased at the end of each

Month i highlighted the things on my sheet that in retrospect hadn’t been necessary this helped me develop a deeper understanding of how i spent money it also illuminated the many small purchases i was unconsciously making every month that i didn’t really need number three i opened a separate savings account i used to keep my savings in the same bank as my checking

Account so every time i checked my checking balance i would see how much was in my savings account this is slightly embarrassing but for years i would often transfer money from my savings back into my checking it was almost impossible to keep my savings account above $500 many financial experts suggest opening a savings account with a separate bank to help save more

And i finally decided to give it a try i set up my direct deposit to automatically put 20% of my paycheck into this new account i only see the balance when i make the effort to log into the account and i haven’t let myself figure out how to transfer money from it to my checking i am now way less tempted to withdraw money from savings it may seem a little childish

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To have to hide it for myself but it’s truly helped me avoid the temptation of spending my savings number four i set attainable goals even when i started working a nine-to-five job after taxes it was still a struggle to cover all of my expenses only recently did i get a raise that has allowed me to truly start saving larger amounts of money i used to be hard on

Myself about needing to accrue a six-month emergency fund but back when i was only able to save about five to ten percent of my income it felt like i wouldn’t reach that goal for years i’ve since learned to set more attainable goals i typically set savings goals that won’t take longer than three months to reach this helps me avoid burnout and boosts my financial

Confidence every time i reach a goal because these goals are smaller adding an extra fifty dollars to my savings account really makes an impact if i was trying to save twenty thousand dollars that fifty dollars wouldn’t feel so impactful whether it’s two hundred and fifty dollars or three thousand dollars set goals that you know you will be able to reach within

A few months number five i learned to practice patience patience is the name of the game with money i feel like i started my journey to get better with money about three years ago but only recently have i really seen any of that work start to pay off it takes time to change habits it takes time to build your savings we live in a world where you can get a lot of

Instant gratification and it was challenging for me to accept that savings goals can take years to meet you will make mistakes you will accidentally overspend you will accidentally overdraft your account you might almost hit your savings goal when you suddenly have to replace the tires on your car being patient isn’t new advice but it’s really critical remind

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Yourself to use financial setbacks as learning lessons look critically at why you may have overspent and think about what you would do differently next time perfection is not the goal we’re not robots be patient with yourself and i promise you that if you want to get better with money you will gradually see progress whatever your goals are in life taking care of

Yourself both in your present and your future should always be at the top of the list and with what simple investing in the future you want is more simple and straightforward than you might think wealth simple is online investing that’s as simple and human as it gets in just five minutes they’ll build you a custom portfolio to fit your personal goals and timeline

Just answer a few easy questions and they’ll manage your money for you on autopilot set it forget it and let your money grow in the background you can turn on automatic deposits as well as set up a smart savings account with higher rates than big banks for your shorter term goals you’re writing your next great adventure or that handbag you need they also have a

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Takes a few minutes to start no excuses

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5 Small Changes That Save Me 20% Of My Income By The Financial Diet

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