We are always being told to save at least 10% of your income. But what if you are, for whatever reason, barely making ends meet? Is it hopeless?
Recently I stumbled across a group on Facebook called the One Percent Challenge created by Paula Pant who blogs at Afford Anything.
The idea is to save 1% of your income for the first month and increase it by 1% each month, so at the end of the year you will be saving 12%. Pretty awesome right?
Say your income is $3,000/month. You would set aside $30 in savings the first month, $60 the second month, $90 the third month and so on...
Even if you cannot increase it every month and stay at 1% throughout the year, that 1% is still better than nothing at all saved. Plus, you could always throw extra money towards it whenever you could.
So don't be intimidated by those in finance who say you must save at least 10%. Just start where you are and increase as you are able. But the key is to start as soon as possible so it can build over time.
Are you going to become a member of the One Percent Club? Or are you already saving more?