Have you guys heard that tip about saving for retirement? One of my biggest goals is to save, save, save, but it is a lot easier said than done. We live on a pretty strict budget and don’t splurge on many things. We try to only eat out a max of one meal a week, don’t shop, and try to eat on a budget without sacrificing health or taste.
I am always looking for tips on how to save money for a rainy day, travel or retirement. The other day I heard a tip that totally made sense to me and seemed pretty painless. The advice was to pay yourself for one hour everyday. Each day, transfer whatever your hourly rate of pay is (pre-tax) to your savings account, 401k, or piggy bank. If you are paid salary, you can figure our your hourly rate by dividing your annual gross salary by 2,000.
This week I started implementing this new technique and I am already excited about the growth I see in my savings account. Think about it – if you make $15 an hour and you pay yourself for 1 hour a day that you work, you will save $3,000 in one year! Pretty cool!
Do you have any cool money saving tips?
Pay Yourself First