How Can You Build Wealth with Only $100 Per Month?

One of the things that holds a lot of people back from saving money is that belief that they don’t have enough to get started. I can’t afford to save is mantra said by so many and yet what many don’t realize is that by carting around this age old belief, they are actually preventing themselves from ever building wealth. That’s why today we’re going to break down how you can begin to build wealth starting with $100 per month using a high yield savings account.

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You’ll never earn enough to save

If you are one of the million people who tell themselves, “I’ll start saving money when I make more money,” the hard truth is, you probably won’t.

Saving money is a habit that doesn’t change simply because the number on your paycheck does. Even if it seems pointless, or like it won’t get you anywhere, working to save even $20 a month is a huge stepping stone to ensuring that you will be able to save more in the future.

Today let’s focus on saving $25 per week — or $100 per month so you can assess just how much impact this amount could have on your financial future.

Save to prepare for the unexpected

One of the best life lessons we can all learn is to expect the unexpected. No one likes the feeling of an unexpected medical emergency or a popped tire on the highway. Unfortunately, especially in America, the dread that comes with things like hospital bills is very real when it comes to our finances.

The last thing we want to have to think about during an emergency is how we are going to come up with the money to afford the proper care. During times like these, having a savings account is one of the best lifelines any of us could ask for.

Because we will all go through unexpected emergencies, all of us will be faced with these big unexpected expenses and will be forced to find some way to pay. Rather than working extra, scrounging for change, taking up a Go Fund Me, or charging our credit cards, a savings account can help us pay our bills without the financial woes. With savings accounts like Savings Connect, you can start building this emergency fund for as little as $100 per month!

Earn interest on the money you save

When most people open a savings account, they opt for the basic account that is already connected to their current checking account. While there is nothing wrong with this, the major downside of accounts like these is that you are not earning any money in interest AKA you aren’t getting paid to save.

With high yield savings accounts like Savings Connect, you can earn interest up to 11 times the national average! As you can see, after using BankRate’s calculator, you could earn around $2,000 in interest only income after a 10 year period with an average return of 3% (right now it’s currently higher than this).

Creating a fun spending savings account

As you work to make the habit of saving, you can also create an account just for fun saving, like taking trips, or planning for early retirement. Saving money doesn’t just have to be about covering your butt for future emergencies, it can be about planning for fun, amazing life experiences.

If travel isn’t your thing, saving money each month, $100 or even less, can help you save for a car, start a business, buy a car, or any number of things that can truly enhance the quality of your life.

Saving money helps keep debt away

As we mentioned earlier, having a heft savings on hand can help prevent us from diving deeper into debt by avoiding the use of credit cards. Interest rates on credit cards can soar around 25% which costs you so much more money than the convenience of having them!

Having a high yield savings account, is a way to make that interest work for you in reverse (although interest rates have yet to be as high as 25% when it comes to saving). Check current interest rates with savings connect.

Read: How we Paid off $6,000 of Debt in 6 Months

How to find an extra $100 per month

When you’re not used to saving money, and are already feeling financially strapped for cash, coming up with an extra $100 per month can feel like a huge feat. Rather than give into overwhelm and completely give up, might we suggest hacking your budget and working to find some wiggle room with your current spending habits?

Set smaller budget goals

Believe it or not, most of us have more access to money than we realize when we simply look at our recurring expenses. For example, if you are currently in the habit of spending $800 per month on groceries, aim to spend $750 so that you can put that extra $50 toward your savings goals.

Next look at your bills, the ones that are easier to control — we won’t be sharing any cheapskate hacks for saving on your water bill here.

Eliminate recurring monthly expenses

Instead, look to things like subscription memberships that you can cancel. Don’t worry, you can always alternate between them so you have access to all your favorite shows. Doing this might easily bring in another $25 per month bringing your savings total to $75.

Set smaller fun spending goals

Once you’ve reached a $75 goal, look to your fun, carfree spending to where you might be able to reduce or cut back. Even taking the time to “hack” your shopping cart before you checkout can be a good way to get money back in your wallet. Next time you’re ready to check out see if you can remove $25 worth of items from your cart. Then, reward yourself with a savings transfer! How Cash App can help you budget.

Automate, automate, automate

To make sure you don’t get tempted into hanging onto your designated savings money, set up direct deposits for $100 per month. You would be surprised how quickly and easily you adjust to this change.

When you have money being directly automated into your savings every month, you begin to see it like another non-negotiable bill, and will be able to see those 0’s in your bank account climb!

If you are more of a visual person, having something like budget and savings printouts can be a good way to help you visually keep track of your saving (as well as your spending).

Next step…investing

For people who are unfamiliar with how to earn interest on money, opening a Savings Connect account can be a great place to start. However, it’s important to remember that saving money is meant to be exactly that…savings.

If you want to know how to make a big financial impact in your life, start earning 10% interest on your deposits and potentially allow the space to retire early or quit your job, it’s important that you learn the fundamentals of investing.

While the word investing can be incredibly intimidating, the No Budget Babe has done an amazing job of simplifying the money jargon so that investing seems simple, possible, and fun! If you’re established. in your savings, check out The Millionaire Investor course to learn how to really up-level your financial life.

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