Start a Spending Fast by Next Week | Week 5

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You're almost ready to start your Spending Fast.  How are you doing?  If you're just joining us, you can catch up here:

Week 1

Week 2

Week 3

Week 4

If you have debt, I recommend going back to Week 4 and working on that until you're debt free.  Once that happens, it's all gravy, and you're ready to start the real saving!

Here's my personal Spending Fast savings process:

I get paid on the 1st and 15th of every month, so I split up my savings deposits the same way. At the end of each pay period I look at everything left over after my "necessities" have been paid/purchased. I then literally "empty my checking account" and distribute my savings to a few different places based on my savings goals.

If you haven't set financial goals for yourself, I suggest doing that now.  Once you get your goals on paper, they become real.  They are easy to accomplish when you can see them, and the feeling of crossing off each item is so satisfying. 

My personal savings goals go as follows:

• Roth 401K (as much as I can)
• Emergency Savings account with a goal of 12 months of expenses (necessities)
• Money Market account (this is where I put most of my savings because I want $20,000 for a down payment on a house)

Usually on the 14th and the 30th/31st of every month, I look at what I have saved, and divide it into these three accounts.  I try to do it like this:

• $200+ to Emergency Savings
• $400+ to my Roth 401K
• Everything else to my MMA account.

Once the money has been deposited, I don't touch them. This is key. What's the point of saving money if you're just going to dip into your piggy bank?

It takes discipline, and it's hard, especially when you're like me and spend money because you're bored, or just because you have it. This is why I recommend emptying your checking account twice a month and putting the money into savings. That way, you won't be able to spend it with that oh so easy debt card swipe.

Also, I suggest using Internet savings accounts from places like ING or Sallie Mae. You don't get checks or debt cards, so it's harder to access the money you save.

Repeat these 5 steps for one year.  You'll be surprised how easy it becomes.  You will save so much money, and kick yourself for being so wasteful in the past!