My Friend Is Struggling to Save Money. I Told Her to Do This One Thing, and It’s Helping So Far

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Having trouble building savings? Read on for one simple tip that could really make a difference. [[{“value”:”

My friend Beth was having a hard time getting her emergency fund to a solid place. She and her husband didn’t have a lot of savings to begin with before having kids. Now, as a mom of three, including one child who’s barely old enough for part-time nursery school, Beth doesn’t work because the cost of child care would basically wipe out any earnings she’d bring home.

But between generally rising living costs and the expense of raising kids, Beth and her husband are struggling. They have some money in savings, but not a lot. And they fear they’re vulnerable in the face of something like a layoff or major home repair.

When Beth came to me for help, the first thing I told her was to try to see if she could find a part-time side hustle she could do from home. But so far, she’s struggled to find something that wouldn’t require her to pay for child care for her youngest.

I then reminded her that when it comes to savings, sometimes, slow and steady wins the race. And through one change, she’s already managed to grow her savings this year.

When you’re willing to make a change

Beth used to joke with me that the cost of gymnastics for her oldest child was the equivalent of a mortgage payment. Only when I looked at what she’d been spending between lessons, tournaments, and uniforms, I realized it actually wasn’t such a joke.

Beth was spending $500 a month at a minimum on this one activity for her child. But every time the subject came up, her daughter didn’t exactly talk about gymnastics with overwhelming enthusiasm. Rather, she chalked it up to something that she enjoyed doing mostly because her friends were doing it, too.

So I decided to give Beth a reality check. Not spending $500 a month on gymnastics could lead to an extra $6,000 in savings per year. From there, it was a no-brainer. Beth had a heart-to-heart with her daughter, and they jointly concluded that continuing to pay for gymnastics wasn’t worth it. In fact, her daughter was actually kind of relieved to discontinue those classes and free up time in her schedule.

Once they made that decision, I told Beth to set up an automatic $500 monthly transfer from her checking account to her savings account. I wanted to make sure the money she wasn’t spending on gymnastics didn’t accidentally get spent on something else.

So far, it’s worked. Beth is already $1,000 richer than she was a few months ago. And if she continues on this path, she’ll get to a much better place financially by the end of the year.

A two-pronged approach

If you’re having a hard time saving money, that’s understandable. But one thing you may want to do is assess your spending and see if there are any expenses you can shed with relative ease. Chances are, you have at least one.

And it doesn’t matter if that expense is just a $40 gym membership. Bank that sum every month, and in a year, you’ll be almost $500 richer.

But don’t just give up an expense and call it a day. Rather, automate the exact amount you’d normally spend as a recurring savings contribution. It’s a great way to stay on track and buy yourself the financial protection you need and deserve.

Of course, the side hustle advice I gave Beth still stands. If your situation is such that you can take one on, that ought to help, too. But if you have constraints like child care, then start by cutting a single expense, automating that amount into savings, and seeing where it takes you.

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