While money doesn’t grow on trees, it *does* grow when you consistently save. The key to building wealth doesn’t come from depriving yourself of anything; it comes from **small, smart habits** that accumulate over time. Whether you’re saving for an emergency fund, your dream vacation, or achieving freedom from working for money for the long haul, the following five tips can help you accomplish that much faster.
Why Small Savings Matter
You’ve probably heard, *”Take care of the pennies, and the dollars will take care of themselves.”* There’s truth in this; **savings that work are simply tiny changes in the way you spend money, and these will have magnificent effects over time in months, and years**!
- $5 saved per day = $1,825/year
- $10 saved per day = $3,650/year
- $20 saved per day = $7,300/year
Just to give you some perspective: imagine what you could do with $7,300 in a year, like paying off some debt, investing it, or taking a vacation, without worrying about any money stress.
5 Easy Ways to Save More (Without the Pain)
1. The “Round-Up” Trick
- There are many banking apps (like Acorns, and Chime) that will automatically round up the purchases you make to the nearest dollar, savings the difference!
- Example: You buy coffee for $3.60, so you save $0.40.
- This practice adds up, and you wouldn’t even know that’s happening over time!
2. The 24-Hour Rule on Non-Essentials
- Before you make an impulse buy, wait 24 hours.
- Most times, you’ll realize you actually don’t need it.
- Not only saves money and creates less clutter.
3. Automating Savings
- Set up an automatic transfer from checking to savings right after payday.
- Start small ($20-$50 per pay) and increase as time goes.
- “Out of sight, out of mind” = less temptation to spend.
4. Cut out one unnecessary expense
- Identify the subscriptions (gym membership, Netflix, apps) you have that you’re not using, and cancel.
- Identify expensive habits (eating out every day) and swap them out for something cheaper (meal prep).
- Even $50/month = $600/year.
5. Pay Yourself First
- Treat your savings like a mandatory bill.
- Before you spend money on anything, stow money away—even if it’s just 5 or 10% of your paycheck.
How Small Savings Accumulate Over Time
Let’s say you saved just $100/month and paid into an investment with a 7% annual return (the average stock market growth):
- 5 years → ~$7,200
- 10 years → ~$17,300
- 20 years → ~$52,000
Now imagine you saved $300/month instead—that’s over $150,000 in 20 years!
Final Thought: Just Start Today
Building wealth does not require a big salary—that is you just need hard work and good habits. The sooner you start, the more time your money has to blossom.
