Saving When There is Nothing in the Budget to Save

My husband and I were newly married, living off of one income (teacher's aid and small youth pastor's salary combined to equal about $1200 a month), using one vehicle, and just trying to survive. We were both familiar with Dave Ramsey's approach to money, and although we had no debt, we also had no savings. Wanting to remedy that, we both started thinking of ways to build a savings, when we really didn't have means to do so. It was a blown tire that caused us to have to borrow money, that helped us really start putting money into savings. We wound up building a $1000 emergency savings before my husband ever moved to a more profitable job. Here is how we did it:

We Put Money in a Savings Account

'Duh!' you might say, but its funny how hard it is to put money back even when you've decided you are going to save. Be it $15 or $150, to start feels like an accomplishment in and of itself! Once you put that first amount in, determine how often you are going to add money into savings. It can be weekly or monthly, but it needs to be somewhat consistent. Build a habit while you build a savings! 

We Found Ways of Making Money on the Side

For us it was me teaching piano. I loved teaching, so turning my piano playing skills into something profitable was easy for me. I mention some ideas in my blog post 'How I Can Afford to be a Stay-at-Home Mom' that you can go check out. If you believe you have no talents, or no time for your talents, then perhaps it's time to declutter your home! Find things you don't need anymore, and turn it into profit. It might not make a whole lot, but it's money that you didn't have before that can help you build a savings. 

It's easy to want to put that side money into checking right away, or buy that pair of shoes that you've been eyeing. Remember your goals, and put the money into savings without a second thought! Ten dollars here and there does add up, and you'll feel better and more secure for having an emergency fund set aside. 

We Changed Parts of our Lifestyle 

Fewer movies, less expensive meals, thermostat set on a lower/higher temperature (according to the season), all to cut costs. When we noticed we had more money at the end of the month because of it, we put it into savings. Some things seemed easier to give up than others, but because we knew it was a short term deal to have a long(er) term savings, it felt doable. 

We Didn't Spend out of Savings Unless it was an Emergency

This is a very hard one, and sometimes there are circumstances that seem like emergencies at the time, but later you feel like you could have done without. Sudden vehicle trouble, health emergencies, etc, are why you have a savings. Don't second guess those circumstances, however, there are less important things that come up that may leave you wondering if you should dip into savings. Pray about it. See if you can move around your main budget to fit the 'emergency' (don't eat out that week, avoid the dollar bin at Target, etc.). If you feel like you need to use it, go ahead, but have a plan on how you will build your savings back to where it was before, and don't let getting money out of savings be an easy decision.

Hope this helps you build an emergency savings, and perhaps beyond! It's also nice to have put back enough to live on for a month, or so on, just in case you lose your job. However, an emergency savings is a good place to start, and will help you build habits to save for other things. What are some ways you build your savings?

Happy Saving!