Can't save a dime? Start with a penny.

You say you can't save a dime? Start with a penny. Adding to your savings incrementally and regularly will develop the strength to save the dime, and then a dollar!

If you're new to saving regularly or the Habit of 10% sounds too much, as Brian Tracy in 'The Science of Money' highlights, you can start at 1% of your net income per week and go from there. This is an effective way of building the savings habit, as you barely notice that you are saving at the beginning. Then as the weeks go by, you increase your savings and get used to regularly saving a good chunk of your monthly take-home income.

Here are some examples showing how the amount saved per week builds the habit of saving. Both examples assume you're starting saving from this week, and that there are 2 pay periods in a month. If you are paid once per month, use the net income per month amount.

In the first example, your bi-weekly paycheck is $2,850, or a net income after taxes of $5,700 per month. For week 1, set a goal to save $46 or 1% of your monthly net income. Cut small things from your week to save that. Get used to not spending. Next week save 2%, or $96. If you save progressively more per week for 4 weeks, you will have a cumulative $460 saved. Pretty decent. In this scenario, it would take 7 weeks to save $1,288, or just over the $1,000 for Dave Ramsey's Baby Step 1. You can do it.

Bi-weekly income ($)	Net Income ($/mth)
$2,850.00	$5,700.00

Week	Percentage allocated to saving (%)	Amount to save from budget per week ($)	Cumulative saved ($)
1	1%	$46.00	$46.00
2	2%	$92.00	$138.00
3	3%	$138.00	$276.00
4	4%	$184.00	$460.00
5	5%	$230.00	$690.00
6	6%	$276.00	$966.00
7	7%	$322.00	$1,288.00

In the second example, your monthly net income is approximately $7,000 per month (or $3,500 per bi-weekly paycheck). Again the same process applies. Saving 1% of your net monthly income in week 1 is $70. By week 5, and saving 5% of your monthly income, you're used to saving $350 per week, and now have a cumulative savings of $1,050. Great, you've hit Baby Step 1 in 5 weeks.

Bi-weekly income ($)	Net Income ($/mth)
$3,500.00	$7,000.00

Week	Percentage allocated to saving (%)	Amount to save from budget per week ($)	Cumulative saved ($)
1	1%	$70.00	$70.00
2	2%	$140.00	$210.00
3	3%	$210.00	$420.00
4	4%	$280.00	$700.00
5	5%	$350.00	$1,050.00

Decide you are a saver. Start saving small and regular amounts, and increase that every week to establish the habit. Soon you'll be willing and able to save 10% of your monthly net income.

If you want help figuring out how much to put away per week as you get used to this, contact us or drop a comment below.

To your success.