Thinking of saving a big chunk of money is like thinking about climbing to the top of a mountain – it seems impossible.
Mountain climbers say their task is one of both mental and physical perseverance; they simply focus on putting one foot in front of the other.
The act of saving money can be similar — by staying focused on putting away one small sum after another, you can reach your goal.
The best thing about setting up a process to save $1,000 in one year is that it gets you into the habit of saving. If you automate it (letting the bank debit an amount from your paycheck and deposit it into a separate account), you’ll hardly miss the money.
Flat amount saving method
Perhaps the easiest method of saving $1,000 is to deposit $19.23 into your savings account weekly, or $38.47 bi-weekly (this may be easier if you get paid every two weeks).
As we discussed, this is a function you can set up with your bank so you don't have to remember to do it.
Downhill saving method
With this method, you start by depositing the highest amounts in the beginning, when your motivation and perseverance is at its highest. After that, it’s all downhill, as the amount you need to deposit grows less and less by the week (mostly).
Use the following chart to guide your deposit amounts and see how quickly your balance grows. If you’re the type who needs to ease into a new habit, just reverse the order of the deposit amounts.
|Week||Deposit ($)||Balance ($)|