6 Fun Ways to Save Extra Money
Let's face it. Saving can be a boring and daunting task. If you are already automating your savings, then good for you. Whether you have a saving system in place or if you have a hard time paying off debt, these quirky ways to save will help you save some extra bucks without feeling restrictive on your budget. You will have as much as $1,000 (or more) in no time! These Challenges are fun, addicting and easy to follow.
The Penny Jar Challenge
1. Penny Jar
The Penny Jar Challenge is so easy to do that even kids can do it. We all have pennies lying around somewhere. What if you could save as much as $667.95 a year by saving the pennies you collect? First collect your first penny and drop it on your jar. On the second day, find two pennies. On the third, three pennies and so on. It doesn't have to be in pennies but any loose change you have that would equate to your goal for the day. The technique here is to make it a habit to keep your loose change and to drop them at your penny jar when you come home from work. If you master this, you would have at least $667.95 or even more if you drop more than the minimum needed for the day.
2. 52 Week Challenge
This challenge is flexible according to how much exactly you want to save up after a year. If you are determined, you can even save up to $10,000! This is done by saving according to your increment of choice. If you start with $2 and add the same value to the previous week's amount, you'll save up to $2,756 in 52 weeks. If you save in increments of $5, you'll end up with $6,890! Be warned though, the farther you are, the more challenging it gets. Towards the end of the challenge, you would need to keep a tighter budget because the amount keeps on getting higher and higher. The end result is worth it so eyes on the prize!
3. Envelope System
Popularized by Dave Ramsey as a way of budgeting or to tackle debt, this system utilizes physical envelopes to fill in different parts of your budget. It's useful not just for budgeting but for different financial goals as well. Now, you might be thinking that this makes no difference from writing down your budget or using a digital tool to track your budget/allocations. However, it all boils down to psychology. Physically seeing your money in envelopes helps you keep track of cash not in your mind but in its truest, tangible form.
To use the envelope system, create different categories for your needs or wants. If you are utilizing it for your budget, fill the amount needed each month. Use it as you go. If there's any left for the month, it becomes your extra moolah. If the envelopes are to save up for dreams and goals you want to achieve, then label them accordingly along with the amount you need for it. This way, it's easier to picture out how much you actually saved. You will have less hesitation to spend your money elsewhere as opposed to keeping it on your regular savings account.
4. No Spend Weekend
There are tons of things you can do that are of no cost to you. Instead of going out with friends or doing anything that's considered an expense, TheWalletMoth.com enumerates 50 frugal, free activities you can do perfect for a no spend weekend.
5. 50/20/30 Budget Rule
This method is especially helpful for those who are just starting out with their budget and don't know where to start. Basically, the rule is that your budget is divided into three parts: necessities, financial goals and personal spending.
The rule states that 50% of your income goes towards your necessities. These include your rent or mortgage, car payments, gas, health care, groceries and other utility bills you might have. Bear in mind that this also includes your minimum credit card or debt payments. Why minimum? Paying the minimum amount is non negotiable so as not to accrue penalties and late fees. Anything more than that may or may not be considered a necessity depending on your purchases.
The 20% goes to your financial goals. This includes savings, investments and debt repayment in case you have incurred debt from frequent usage of your credit card. Though it's more ideal that you do not consume most of your allocation to debt repayments. If you are already at the point where your debt is more than 20% or if you are having a hard time with your budget because you can't keep up with your payments, do consider professional advice and help from a reputable debt relief company like CuraDebt (consultation is completely free!). If you don't have any savings or investments in place yet, it might be time for you to consider your options. It's never too late to start your emergency fund or to start investing.
The remaining 30% is for personal wants, non essentials or personal expenditures you might have. Hey, you got to live a little right? As long as you have the other categories in place, there's no problem with you spending your hard earned money. Dining out, movies, shopping sprees, your Netflix subscription, clothes and other non urgent purchases go here.
If you are able to master the 50/20/30 Budget Rule, you'd be happier and saving up would be less burdensome for you.
6. $5 Bill Challenge
The $5 Bill Challenge is easy and effortless. There are no restrictions and only one rule to follow. Every time you come across a $5 bill, keep it in a piggy bank for you to open at the end of each year for extra money. It's suggested that you keep your saved bills in a container where you can't see or peak inside of it. This is so that there's less pressure for you to see how much you've actually saved. If you are diligent, you'd be surprise how much you actually can save in a year. Supposing you get to drop five bills in a week, that's about $1300 of savings in a year!
Saving Money Thoughts
If you are having a hard time keeping up with a strict and tight budget, if you just want to have some extra cash to splurge for the holidays or even to pay up your debt, these six fun ways to save extra money will surely help you.