It's definitely a difficult place to start, but if you want to make that your goal, you can painlessly work your way up to that amount slowly but purposefully.
Start with Small Change
Every time you buy something with cash, you get some change back and then where does it go? Does it seem to disappear? Start pocketing this change and then each night set it aside in a jar. Once a month, take your jar to the bank and deposit the cash into your savings account. Keep a few quarters in your vehicle for meters, but other than that, keep your cash for your savings.
Does Your Bank Offer Rounding Up?
Some banks now offer a great savings program for those with checking accounts. When you write a check, they will round up the charge to the nearest dollar, then put the extra cents into your savings account. Your monthly bank reconciliation will be easier and your savings account will grow faster. Ask your bank if they offer this service.
Charge Yourself for Coffee
When you make coffee or espresso at home, you're saving yourself a ton of money. Treat yourself to that savings by paying yourself $1 for each cup of coffee or $3 for every latte. Tally up the dollars at the end of the day and put that money in your savings account. You can keep track of the total and add that money on paydays, or if you don't get charged a per check fee, you can write a check to savings that you'll take to bank on your next trip.
Reward Yourself for Making Lunch
If you are taking lunch to work or school every day, you are saving yourself at least $5 each day. That may be a lot to set aside for savings, but at least give yourself $1 each day you take your lunch instead of eating out.
Buy Used Instead of New
Need some new clothes for work or school or play? Check out the thrift stores and consignment stores in your area. You can find some great deals on current fashions whether they are dressed up work clothes, suits, jeans or casual sweats and shorts. Some stores have $1 clothing sales so check out when they have specials and see what you can find. You will save enormous amounts of money this way. For the price of a new pair of pants, you could walk out with an entire wardrobe.
Add Raises and Rebates to Savings
If you're lucky enough to be getting a raise, put that increased income right into your savings. You already know you can live off what you're currently getting, so now's the chance to get ahead. If you're expecting a rebate from a purchase or from taxes, add these funds right to savings also for an added boost.
Automate the Savings
Talk to your bank about setting up an automatic transfer to savings with each paycheck. If you get paid by direct deposit, you can schedule the transfer for the next business day. Start with an amount you probably won't miss such as $20. Once you get used to that amount, increase it by five or 10 dollars by calling your bank and requesting the change. You may also be able to make these changes online. Automating these transfers makes adjusting to the new amount easier.
Question Your Expenditures
The funny thing about saving money is that it does become an addictive game. After you begin accumulating the dollars in your savings account, you'll want to find even more ways to make the amount grow. The easiest way to increase the amount is to spend less. When you are shopping for groceries, going out to eat or deciding which vacation to take, question the amount you'll be spending, find ways to cut down the costs and look at options for more affordable living. You won't have to necessarily change your lifestyle or eliminate the things you love and want to do, but you will spend less to do them and you won't feel bad about it.
Saving shouldn't be a horrid and painful experience, but should be a part of your day to day life. You should find great enjoyment in watching your savings grow, investing that money and increasing your net worth. You can be rich even when you start slow. By the miracle of compound interest, you too could end up with a golden nest egg.
