Saving money can feel overwhelming. You may be thinking, “I don’t have time for this! My budget is already stretched as it is!” But in reality, if you’re looking to save money — or even just spend less on daily expenses — it’s not hard at all. In fact, there are some simple steps you can take today that will help you start building an emergency fund or paying down debt faster than ever before.
In this blog, I’d like to focus on the FIRST step to saving money.
And that first step is…
Start allocating a percentage of your income to an investment portfolio.
There are many different types of investments out there, including retirement, stocks and bonds; each type has its own advantages and disadvantages.
But no matter what kind of investment portfolio you choose — or if you choose multiple types — you’ll want to start by assigning a portion of your income toward these investments every month.
The sooner you do it, the more time your money has to grow!
How much, though?
Whether that percentage is 5% or 10% or 20% (of your income), it doesn’t matter.
That said, your current stage of life may certainly play a role.
If you’re just starting out as an independent adult and don’t have much money set aside yet, aim for at least 5% of your income.
And if you’re further along in life and have more disposable income, try setting aside at least 10% or more. The key here is that you set a goal and stick with it — even if it seems like a big chunk of money in the beginning.
Pro tip: Don’t worry about timing the market and/or trying to get in when it’s low or whatever this or that expert says.
Just get in the habit NOW — every single month or every single quarter — of adding to your investment portfolio and let it start growing.
The sooner you start putting money aside for investment purposes only, the less likely it will be that an emergency will take precedence over your goals. Not to mention, when retirement rolls around, you’ll have saved enough to live comfortably without having to worry about making ends meet every single day.
For much more on this topic, including:
- How to prioritize paying off debt vs saving vs investing
- Thoughts on cryptocurrency
- What you should do with an inheritance (after, also, simultaneously being laid off)
Then, you must check out this episode of The Chalene Show:
And don’t forget to subscribe to TCS for weekly shows dedicated to your overall best life!
