A Penny Saved: How to Save Money with Little Money to Save
by Deborah Ng on April 15th, 2007
A common mistake many people make when trying to save money is to wait until they have enough cash to make a bank deposit. They feel it’s inconvenient to make a trip to the bank with under fifty or even one hundred dollars. The problem with this is that any extra money is temptation. Any time we have a few extra dollars in our wallets, we’re inclined to spend.
When I was 20 and living on my own, my existence was hand to mouth. I made a vow to deposit something, anything, with every paycheck. Sometimes after paying the bills, allotting for expenses and purchasing groceries, I’d have only a couple of dollars left. Nevertheless, this went into the bank.
The use of ATMs for deposits wasn’t widespread in the mid-eighties so I’d stand in line on a Saturday morning to make my deposit. Banks were crowded on Saturday mornings, and sometimes, I would wait for an hour to deposit my paltry cash into savings. A bank teller who was about my age once asked me, “Why do you stand on such a long line to deposit seven dollars?” I said, “I have to. I’m not going to save up any money if I don’t make this a weekly habit.”
After that, it became a game for us. I would always stand in her line and when I came to the window, we would joke about the amount to be deposited. The joke wasn’t on me, however. I was building a savings account. By the end of the year, I had a few hundred dollars. This may not sound like a lot, but if you’re an underpaid twenty something who is doing her best to make ends meet, this can seem like a fortune!
Nowadays, every bank has an ATM in its lobby. No one has to stand in line to deposit a few dollars. Deposits of all sizes can be made at one’s convenience! Consider this, if you deposit five dollars each week for a year, you’ll have two hundred and sixty dollars by the time the year has ended. Ten dollars a week will get you five hundred and twenty dollars at the end of the year. If you deposit twenty dollars a week, you’ll have amassed a small fortune of one thousand forty dollars! This isn’t counting interest.
Something turning people off from opening a savings account is how most require a minimum balance. This doesn’t have to be the case. Talk with a bank manager and explain your situation. Let her know you wish to make regular deposits but can’t afford the minimum balance. She’ll more than likely be happy to work with you.
Depositing even a few dollars each week or pay period will add up. It won’t seem like a lot at first, but the end results will be well worth it. If this starving blogger can put some money away each week and survive, chances are, you can too.
Tags: how-to-save-money, how-to-start-saving-money, money-saving-ideas, money-saving-tip, Save Money, saving-money, ways-to-save-money
Share This
POSTED IN: Finances, General
0 opinions for A Penny Saved: How to Save Money with Little Money to Save
No one has left a comment yet. You know what this means, right? You could be first!
Have an opinion? Leave a comment: