5 Tips to Help You Save Your First $1,000

Savings are important. The first $1000 that you save could be the most important money you put away in your life. That $1000 is the first step of putting together a rainy day fund. You never know when something you never expected will fall right in your lap. This first $1000 is your 1st step toward financial freedom.

But getting started is always easier said than done. Keeping on track is harder still. Just look at all the cars parked in your local gym’s parking lot today. Then check in a month. I rest my case.

snowball

If you, like many people, find yourself running out of money before the end of the month, coming up with $1000 might seem like a mountain too high to climb. Here are 56 tips to help you save that first $1000.

6 Tips to Help You Save Your First $1,000

“It always seems impossible until it’s done.” – Nelson Mandela

Tip 1: Snowball Your Debts

What Is a Debt Snowball?

If you have several debts to pay off, set up a system that front-loaded with rewards can help keep you on track.

That’s the idea behind the “snowball” method of debt repayment. Think about rolling a snowball around the yard when making a snowman. The more you roll, the bigger the ball.

With the debt snowball plan, you pay off debts in order from smallest to largest. The small victories up front and the satisfaction of seeing your debts eliminated one by one, keep you engaged.

Tip 2: Renegotiate your interest rates

As you become more consistent paying down your debt (and your bills on time), your lenders will start seeing you as less of a risk. A you are “snowballing” your debt call your lenders and ask them to reduce your interest rates – just like that. Lower rates, less debt equals more money you can put toward your $1000 goal.

Tip 3: Stop spending money on things you’ll never miss

Once your snowball starts working look for the things you spend money on that you won’t really miss or don’t even use. Check your cell phone plan. Are you using all the minutes or data? Are you watching all those cable channels? Do you really need that Starbucks every day?

Maybe instead of eating lunch at the corner cafe every day you bring lunch with you to work once or a couple of times per week. Be creative, there are many ways to use this method to cut spending and get you that first $1000.

Tip 4: Lighten the load

We all have lots of “stuff” we don’t need no longer use. An old computer, those skis in the garage, grandmas dishes… Have a yard (or garage or tag) sale. Put an add on Craigslist or use the new AWESOME Facebook Marketplace feature to sell unwanted thing you don’t use. Not only will you add some money toward your goal, you’ll also get rid of some un-needed clutter at the same time. 2 birds with one stone, how about that.

Tip 5: Work more

On paper, this one doesn’t sound so great but if you can some extra income by picking up an extra shift of some overtime hours, why not. The money can add up quickly.

Think about it. Your making a little extra money, selling unwanted things, spending less and paying off your debt. All of these things will help you get to your first $1000 faster than you thought possible.

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