How to Quickly Save Your First $500

Saving money can be tough to do, especially when you’re just starting with your financial journey. There’s already a lot to that you have to deal with initially, like finding out the total amount of your debt, setting up a budget, coming clean to family members, etc. Plus, life happens, to all of us, and every time we try to gain an inch the world comes up and snatches us back a mile. So, I completely understand when someone says that they have a hard time trying to build up their initial savings account. While the ultimate goal is to save your first $500, there are many different ways to go about doing so. Here are a few things to keep in mind as you tackle your first big financial goal.

Decide Where You Want to Put It

Your new baby savings account needs a home. It may be tempting to want to put your money into a savings account that’s connected with your checking account, but that may not always be the best bet. Here’s why, your big box banks like Bank of America, Wells ~~Horrible~~ Fargo, T. D. Bank, etc., aren’t trying to help you stack your coins like some other places. Big Box banks like the ones listed above only offer at most a .03% APY, which in lamens terms means it’s the money you make for allowing them to hold your funds aka Annual Percentage Yield. You may think that with $500 you aren’t going to be making that much back on you’re money, but listen with your financial journey comes a whole new mindset. I need you to start thinking like these money hungry student loan company’s that will milk as much as they can from you if you had a $500 balance. I want you to put your money in an account that’s going to give you the best return.

Personally, I use Capital One 360, there no fee’s, no minimums, and no required daily balance, Plus you can have as many savings accounts as you want. Plus, There’s even a $25 bonus incentive when you sign up. Do your due diligence and shop around. There’s nothing wrong with using a big box bank to get started and moving the money later.

Choose Your Non-negotiables, What Don’t You Want To Give Up

To save your first $500 more than likely the main piece of advice you’re going to get is to cut your spending and whoever tells you this is exactly right. However, before you go all gangbusters on your lifestyle take a moment to think about the things in your life that make you happy — things that would make your financial journey more bearable. These are your non-negotiables — the things that you maybe shouldn’t give up.

Many will tell you that even though a debt free journey is rewarding and it will ultimately change your life, it’s also freaking mentally exhausting. I’m not going to sugar coat it. At time’s it sucks, and it will have you questioning your sanity. This is where those non-negotiables come in. They help keep you sane and make you feel like you matter just as much as paying off your debt or saving money.

So if you’re going to cut anything, make sure it’s not a non-negotiable. Everything else that you can live without can go to free up extra room.

Automate Your Savings -Out of Sight Out of Mind

The fastest way to save up $500 is to set it and forget it. Figure out how much money you can afford to be magically whisked away into the security of your savings account before you even see your paycheck. By doing this, you’re leaving the middleman out. That middleman is you! This method also helps to alleviate any excuses for why the money never actually made it into account. No more “See what had happened was…”

Automating your savings is easy. You can set up automatic transfers through the bank or through your payroll account with your employer. You can even sign up to have your bank round up any purchases made with your debit card to the nearest dollar and have that money deposited into your savings. There are also saving apps like Qapital.

Bring in Some Extra Money

In the personal finance world the word “side hustle” has replaced part-time job. In a nutshell, the quickest way to save $500 is to bring in extra money outside of your paycheck. Picking up extra work can be hard, especially if you feel like you’re already being pulled in 100 million directions and don’t have the capacity to take on more. Here’s one thing that I want you to keep in mind. It’s called a “part-time” job because you’re only doing it for part of the time. Think about it as a means to an end. Once you’ve saved up the money, you need you can choose to stay on and continue to use that extra income to fund your goals, or you can move on.

There are tons of ways you can make money by simply using your God-given talents without having to clock in somewhere else. Think about what you enjoy doing, what things are you continually getting compliments? Take that passion and turn it into a business. This is how side hustles are born.

Adopt Traits of Frugality

There are levels to being frugal so please don’t take this to mean that you should be dumpster diving at ULTA to save money on beauty products (yes, people actually do this). Adopting traits of frugality can go along way to helping you save money. Not to be confused with being cheap, those who are frugal seek out the best deals, use coupons, choose not to spend money on the newest electronics opting to use their current devices a little longer, shop at discount stores, go with the lower cable plans, and really look for ways to get the most bang for their buck. You may find that you’re more frugal then you initially thought.

When we stopped shopping at our usual grocery stores and switched to ALDI, we were able to save almost 40% on our grocery bill! This savings was huge for us, and now we can allocate the excess to other areas of our budget. Adopting traits of frugality in all areas of your life will help to free up money that you can use towards saving your first $500.