The Federal Reserve says that 40% of American adults have less than $400 in savings. To change the narrative, I challenge you to save $500 by Labor Day. Two months doesn’t seem like a very long time, but it can be done. I’ve heard that a goal without a plan is just a dream, so I’ve created a savings plan for you.
Why You Need to Save $500
The report goes on to say four out of ten adults stated they could not cover an unexpected expense, such as a vehicle repair or appliance replacement. Imagine the relief you will feel knowing that you’ve saved money in an emergency fund if something happens. However, if you prefer, your money can be saved for a positive event.
- Do you want to save a down payment for a car or house?
- Is a wedding, anniversary, or birthday coming up?
- Want to take a vacation before school starts in the fall?
- Are you going to shop for holiday gifts?
- Is Black Friday the day you get all of your new gadgets?
- Do you want to go back to school?
- Want to start investing?
If you said yes to any of those questions, here’s your opportunity to start saving.
How to Save $500
You can save $500 in two months. It may take change and/or sacrifice, but it will be worth it. Each week you will save (via transfer or direct deposit) a set dollar amount into a savings account of your choice. I recommend a high-interest online savings account. The interest rate is much higher than your standard savings account. I use Ally Bank, but there are other banks with even higher rates. Also, you may even be able to earn a bonus for opening a new account. The plan is as follows for eight weeks:
- $25.00
- $50.00
- $75.00
- $100.00
- $25.00
- $50.00
- $75.00
- $100.00
Feel free to rearrange the weeks or add more money to the plan if your lifestyle allows. As long as you save at least $500 by September 2nd, you will have successfully completed the challenge.
Make Room In Your Budget
This plan uses graduated increases to ease you into setting money aside and finding areas in your budget for savings. There are several ways to save money just by making a simple phone call. Talk to customer service at your cable, internet, cellular service companies, and ask for a better plan, discount, or promotion. To support your request, you can look up some competitors’ prices and ask if they will match the lowest price. If you are at the end of a contract, consider switching to a low-cost alternative. For example, you can cancel your cable subscription and use streaming services instead. I gave up cable in 2016, and I don’t miss it. I can watch all of my favorite movies and shows online or DVD.
Another way to save is to only eat out on the weekend or one meal per day on the weekend. Cooking at home is more cost effective and healthier for you. Plan your menu for the week and shop accordingly. If you rather eat out every day, then do it smartly. Find coupons and deals. Some banks or cards offer cash back at restaurants when added to your account. Set a food budget every week and stick to it.
No matter your motivation, it is never a bad idea to save $500. Every time you make a deposit, think about your goal. Picture the house, the vacation, or the relief in an emergency. By Labor Day, you will be $500 richer.