At the end of 2013 I stumbled across this little gem of a savings plan while I was desperately looking to find a way to save some money for my emergency fund. The premise of this particular plan is that you save a little bit more each week until you’ve saved over $1000 in a year. It’s simple, it’s easy, it’s brilliant. Here’s the basic plan, as seen on SaveAPrettyPenny.
As you can see, this plan doesn’t seem too difficult on a week-to-week basis, but it certainly adds up quickly. However, having to put so much aside by the end of the plan (or during the holidays if you’re like me and started on January 1) can be quite daunting.
My advice is to follow the plan in reverse. Start by transferring $52 to savings, and end transferring $1. That way each week you end up having a bit more money to spend. This is a great way to start out saving, because it goes little by little until you’re used to thinking about how much you have in savings and in making financial decisions with more awareness of the future. I highly recommend this as an introduction to savings. Eventually you’ll want to put much more away each paycheck, but here is a great place to start building habits and awareness of your personal finances.