As a country, we’re not saving. Our personal savings rate is at its lowest level since the 2008 recession.

How’s your savings going?

Plenty of reasons explain why people aren’t saving: un- or underemployment, tax issues (local, state or federal), stagnant wages if you do have a job, illness (your own or a family member’s), the rising cost of living or even good old-fashioned bad luck (of all the cars in the parking lot, yours was the one that got sideswiped by a guy who just kept going).

Fact is, we have to do better. That’s why America Saves Week was created. Even if you don’t take the America Saves pledge (which apparently gives you the chance to win cash) or follow any of the suggestions in the ASW tool kit, the program might help you focus on this essential fact: It’s up to us to save ourselves – and one way to do that is to SAVE.

 

For the past month, some readers have been participating in a no-spend February. The fact that America Saves Week also takes place in February is a nice coincidence. May I suggest that at least some of the money you didn’t spend this week go into savings? As my daughter points out, it’s not savings unless you save it.

 

America Saves Week: Why we save

 

What kind of savings to aim for varies from person to person. That could be building an emergency fund, paying cash for the next car, setting aside money for a child’s education, banking bucks for a vacation or putting away money for retirement. Some of us save in more than one category. Heck, you might be saving in all those categories, and then some.

Sometimes it feels as though it takes every dime just to cover the basics. That might even be true. For most of us, though, teasing out a few bucks here and there from even the tightest of budgets is possible. It just won’t be fun.

You know what else isn’t fun? Not being able to cover emergencies. Having to take out a car loan at potentially ruinous interest. Watching your child have to borrow big bucks because you can’t help even a little. Never getting to go anywhere. Retiring with not much else except Social Security to survive on.

 

Finding ways to save

 

I say this not to criticize, but to motivate. It may feel impossible to find “extra” money when you’re living close to the bone and/or facing exhausting personal challenges.

Life is not fair. Sometimes it’s really not fair. However, as I note in my second book:

“No matter how tough (your) life may be, it is yours to embrace rather than endure. You could waste an awful lot of time railing against things you can’t change. Use that energy instead to focus on the things you can affect, always with an eye toward a better future.”

In this case, we’ll be using that energy to challenge ourselves to save. Suppose you could find an extra $5 a month in your budget, right off the bat. In a year’s time that will be only about $60 plus interest* – but it’s $60+ you wouldn’t otherwise have.

More to the point, success tends to beget success. Change that “I will find at least $5 a month” resolution into “Got the $5 – now, where else can I find savings?” You will likely find savings – quite literally if you pick up dropped coins – in a lot of places.

First, the big guns:

• Shop around for better car and home/renters insurance, a cheaper phone plan, a better deal on Internet/cable. The savings can be pretty remarkable; one guy I know recently found out he was paying twice as much as he needed to for vehicle and home insurance.
• If possible, look for a part-time or occasional gig through sites like SideHusl or 1099Mom.
• Rethink your food budget. I harp on this a lot, but that’s generally where big savings can be found, month after month. Leanne Brown’s cookbook on eating for $4 a day is available as a free PDF, and the Internet is full of inexpensive, delicious recipes.

Maybe you allow yourself two movies a month with a friend, or have a habit of picking up a six-pack of your favorite craft beer every payday. For the next few months, make it one movie a month and a six-pack every other payday. Put the money into savings.

Schedule a meatless meal once a week (or more often). Switch to at least some generic products. Soak some dry beans instead of buying canned ones. Go to the library rather than spending so much on books, magazines and Redbox rentals.

 

America Saves Week – a group activity?

 

A chapter from my first book contains more than 30 ways to eke out extra bucks here and there. I’ve been offering it for free to anyone who’s interested; at some point I turned it into a Google doc that anyone can access.

Here’s a great way to use that chapter: Start a savings club with relatives and/or friends who need to up their savings games. Tell them, “This is America Saves Week – let’s promise to help one another reach financial goals.” At the end of a month, or six months, share your successes.

It’s so tempting to think, “Next year – things will have settled down next year and I’ll start saving then.” Or maybe, “The kids need so much and I just can’t find any extra money – maybe when they’re a little older.” Or even, “Don’t I deserve to have this [whatever-it-is]? You can’t take it with you!”

The best time to have started saving was 20 years ago. The second-best time is right now. Every dollar you save (even if it’s painful) is a dollar that will support your financial goals. Another thing my daughter says: “Future You will be judging Current You. Harshly.”

Readers: How’s your saving going? Got any tips to share?

*Online banks are paying 2.2 percent interest or more. I’ve got a chunk of my savings at Ally Bank right now. Consider moving some of your money into one of these FDIC-insured institutions. It’s not a lot of interest but it beats the 0.15 percent I was earning before that.