We all know what it’s like to be cruising along on financial autopilot when BAM! Out of “nowhere” a major “unexpected” hit comes and knocks us into a scrambling tailspin. Whether it’s medical expenses, taxes, that credit card bill we lost track of, car repairs or anything outside the norm, those extraordinary “hits” can set our vacations plans back years.

But let’s face it. Those types of hits aren’t all that unexpected, are they? We know we’re going to have to pay taxes and the credit card bill and more often than not for a trip or two to the doctor. And on top of those expenses, studies show that at least $600 goes toward “discretionary expenses” which include restaurants and entertainment, clothes and etc., services, and home appliances. That’s a pretty hefty chunk of unbudgeted change to find in between your couch cushions.

So what’s the best way to go about saving when you’re already at maximum output in your bare bones budget (https://jmvfinancialservices.com//4-ways-to-stabilize-your-finances-on-an-unstable-income)? Here are three ways to start slow and eventually build that monetary stockpile momentum:

1. The 10/10/10/30/40 Rule: Ten percent of your net income is for tithing; 10% of the gross goes in a “fun money” account to be used on entertainment and maybe even a coffee or two; 10% into savings for the expected unexpecteds; 30% for food, rent, car, etc, and 40% savings. Obviously these numbers can be tweaked a little bit, but don’t stray too much from the formula or you’ll run the risk of straying permanently. If you need to put 30% into savings and live off of 40% for a while that’s totally okay. Just be sure to switch over to the original formula once the savings is on the healthy side.

2. Have a penny? Save a penny. Save all your change and put it directly into your savings account. It adds up quicker (and with a lot more to count) than you think!

3. Round up. Find an app that links to your bank account, rounds up all your purchases to the nearest dollar, and puts that money into your savings or even investment account. Some options are Acorns, Dobot and Qapital.

Looking for more bare bones budget savings ideas or other ways to make your money work for you? Contact us today!