Why Didn't I Learn This in School: DIY Savings Hacks

Updated

When it comes to savings, 62 percent of households have less than $1,000 in the bank.

Everybody can use a late in life harvest -- so indulge in some life hacks now to plant the seeds for a healthy financial future.

Humans are wired to want smaller, more immediate rewards over the larger, slower ones. However, being aware of those tendencies can make you better at handling your money.

SEE MORE: Why Didn't I Learn This in School: Hand-Me-Down Discount

One way to rewire your spending is to create three separate accounts: a checking account for fixed expenses, an account for "fun" expenditures and activities, and a savings account that's not linked to any of those others. 10 percent of each paycheck should go here.

Next, focus on budgeting by tracking your spending and identify areas for improvement.

If budgeting seems too laborious and three accounts feels like too many, try the 80/20 method. 80 percent goes toward spending -- 50 percent towards necessities and 30 percent towards discretionary items -- while the other 20 percent goes to saving.

People tend to spend more when using credit and debit cards. If this sounds like you, try withdrawing a fixed amount of cash once a week and limit yourself to those stacks. Save $1 on week 1, $2 on week 2, and so on. By week 52, you'll have saved $1378!

So don't avoid what lies ahead. Start with small investments, and watch that money tree grow along with your financial confidence.

Check out 20 unexpected ways to make a quick below:

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