How to Begin Saving Money When You Have None

Everyone knows that saving money is important.

Yet, it’s hard enough to do when you have plenty of it. What about for those people who don’t have any?

If you’re broke, consider the following steps you could take to set money aside and begin building your savings.

Cut Costs

First and foremost, you need to take every opportunity to cut costs.

Most people are convinced they’re not spending a single penny without cause, especially if they’re broke.

Still, it’s worth thinking about just to be sure.

Do you buy name-brand products, for example, when there are alternatives that could save you money?

Even something that small should be cut from your budget.

Put Together a Budget

Speaking of which, you need to create a budget.

Aimless spending makes saving money impossible. Take your time creating this budget and return to it regularly as you find opportunities to revise it. If most people had budgets, they would never have to worry about being broke.

Look for Other Streams of Income

Now, some of you might reply that a budget won’t help because you simply don’t bring in enough money.

Nonetheless, a budget is important. Please follow that step.

That being said, if you’d like to give your budget a bit of leeway, then you need to make more money.

This might mean dusting off your resume and applying for new jobs.

It could also mean looking into opportunities like:

The gig economy is alive and well. Even if you don’t think you have a very marketable talent, there is definitely an opportunity out there that could put money in your pocket.

If you’re at the point where you’re truly worried about your bills, these kinds of opportunities can be lifesavers.

Set a Savings Goal

While the above steps can help you build some traction toward setting money aside, we recommend you also put an objective goal in place.

A savings goal will do a couple things.

The obvious one is that it will give you a number to work toward instead of just “not broke anymore.” Objective goals will always beat vague ones.

The other reason we recommend a savings goal is because it will keep you from slipping back into your rut right away.

A lot of people do the aforementioned steps just long enough that they can pay off their most pressing bills or handle a major purchase they have to make.

Then, they slip back into old habits or, to celebrate, they splurge and end up spending a bit too much.

Give yourself a goal that’s just far enough out of reach that it will take you three to six months to hit it, at least. This might be $1,000, but it could also be $100.

Hire a Financial Advisor

Finally, as soon as you can, get professional financial guidance. Hiring a financial advisor will make it almost impossible to end up in this type of situation again.

If you’re ready to begin talking, call Mooney Lyons today. We’d love to hear about how we can help.