Advice On How To Save $1,000 While Living Paycheck To Paycheck
It may seem impossible to save money while living paycheck to paycheck, but it can be done!
Saving money is hard when you’re living paycheck to paycheck—but it’s not impossible. If you need some inspiration, check out Kyle Taylor’s story. He is the founder of The Penny Hoarder, and his article “How I Stopped Being Broke and Saved My First $1,000 (A Month-by-Month Guide)” has taken the internet by storm (it’s been shared nearly a million times).
Taylor breaks down his strategy for saving money month by month. The first month starts off easy, with just a few dollars put into a savings account. The second month increases to $15 a month, and each month following, the amount increases again.
Ultimately, the goal is to save $100 a month, starting in the fourth month. The number sounds high, but Taylor offers suggestions on how to make that money each month.
It’s interesting that his advice doesn’t just focus on cutting back and saving—it encourages finding additional sources of income (most of which are low-effort and far from full-time) in order to bring in more money. He suggests you continue living day-to-day off of your main source of income, and use the income earned from these side jobs exclusively to build up your savings.
After the first year, Taylor advises to continue saving $100 monthly. By the first 12 months, if you stick to his plan, you’ll already have $1,000 saved, and he suggests putting this money into an IRA.
It’s hard to fathom placing a priority on saving money when you’re living paycheck to paycheck, but it can be done with some creative income-building and dedication to setting money aside.
Nearly a million people have shared Taylor’s inspirational post, so it’s clearing hitting home for many. You can check out the full article here on The Penny Hoarder.
Photo by free pictures of money