My family tends to make fun of me for being a very frugal person. I don’t know any other way to be. Splurging or purchasing unnecessary items (except for books) leaves me with a tremendous feeling of guilt. Thus, when I share a plan to help you save $5,000 this year, you can take it to the bank. Literally. If you follow the plan below, you can definitely reach your savings goal.
I saw something a few weeks ago that got me thinking. Of course, I can’t find the original post (I think it was a tweet that someone shared as an Instagram story…because social media is just confusing.), so I’ll paraphrase a bit here:
If you want to buy something that’s considered a splurge or unnecessary purchase, put an equal amount of money in your savings.
Having to save for it “twice” will make you think more about what you’re purchasing and if you really want it. Honestly, I think this is a fantastic rule. It allows you to treat yourself without feeling the guilt since you also put aside money into your savings, helping toward whatever you savings goal may be.
With all of that being said, I’m sharing my plan to help you save $5,000 this year. I’ve provided both a monthly and weekly option. Everyone gets paid differently, so do what works for you! If you’re feeling a bit extra ambitious, be sure to check out my $10,000 savings plan too!
As always, my rule of thumb is to put any “extra” money into your savings account. If you get a tax return, work bonus, side hustle money, etc. put it into your savings. It’s variable income, which, in theory, means that you haven’t accounted for it in your budget. If you don’t need it, save it.
There are also a ton of ways you can save money while you shop! Be sure to check out my blog post on my six favorite ways to save. (Hint: I love using Rakuten when I shop online. Those “Big Fat Checks” go right into my savings. However, I don’t shop a ton, so it’s usually only $20 or so every quarter.)