What is the best way to save 10,000 dollars? I talk and meet many young individuals that want to invest in real estate. A lot of them have big dreams and aspirations and want to do great things. The conversations start out casual but 90% of them always end up on the subject of saving money to buy investment properties.
I get asked questions like, How do I save money sow I can buy an investment property? Whats the best way to save? Who can give me money? What’s the secret Senad? I have big dreams but little money. You guys get the point.
These are the same questions I had before I bought my first rental property. I know the stress and frustration this can cause. It absolutely sucks.
Let me tell you this, if your in this spot you are on the edge of failing and succeeding . The decisions you make at this stage will determine a lot. That sounds scary doesn’t it?
I was in this stage for about a year before I decided enough was enough. I asked those question and never got a answer I liked, I always thought there was a way around it that someone was hiding the secret from me.
After about a year I realized that if I wanted to be a successful real estate investor I needed to take drastic action and start saving more money immediately. After googling some ways to save, I got a ton of generic articles that didn’t seem to be in touch with reality. A ton of the same old same old. This is not one of those articles.
Let me ask you this, would $10,000 help you invest in real estate? Would it help you sleep better at night? Would it help you buy your first property?
Most people will say “well yes of course”
But how do I save $10,000 I’m already struggling paying my bills and i can bearly save anything.
What you can do with $10,000
- Pay of debt- credit cards, school loans….
- Go on a vacation
- Buy your first rental property (my choice)
Let’s get to it. $10,000 is not just going to fly to you on a magic carpet you have to come up with a automatic system to save more it’s as simple as that.
You don’t have to save $1000 a month or go hungry trying to save. You can build these savings in tiny increments of $10 or $50 or $100. The best part of all? Anyone can do it. That is how I personally save and I recommend this to everyone I know.
The way I set up my saving machine.
I opened an Ally Savings Account and I set up automatic withdrawals from my regular checking account. Online savings account opening is very easy takes about 5 minutes.
Why I Chose Ally Bank
- One of the Highest interest paying saving account anywhere.
- No physical locations (this way I don’t stop by and withdraw money for stupid stuff)
- Great automated system
- Fully FDIC insured.
Putting money in savings is one of the hardest things to do. That is why I highly recommend opening a free account with anther bank and automatically saving money.
With a free Ally savings account you can save $10 a week or $100 a week, or bi weekly…
I started with $25 a week, after I adjusted my life style to save $25 a week I bumped it up to $50 a week.
I was working at a 9 to 5 making $9.50 a hour, saving $50 a week was a challenge. Over the next 4 months my savings grew and the more they grew the more motivated I become.
The more motivated I was the more I save, I slowly increased my weekly target until I got to $100 a week. I was sow proud of my self.
The point I’m trying to make is money will not save it self, you have to take action and start. Even if you start with $10 a week and work your way up. I’m positive you can start saving at least $10 a week, just think about it that’s like missing a cup of coffee at Starbucks:)
Taking action and committing to saving money automatically will help you get your first property a lot sooner.
- Start out will a small amount and work you way up every month
- Automate as much as possible
You can use this method to save for any reason. Weather it’s to pay of school loans or credit cards or my favorite of all to but rental property.
I invite you to share your tips, advice, questions and struggles that you have faces when saving money. Share them with our member on our Facebook Page.
What’s Your Savings Personality?
There are two type of people when it comes to saving money. They are total opposites of each other.
The Ninjas – these guys will open an account and set up automatic withdraws and save money that way. They will hide their money from themselves. This way the money they are saving is out of sight and out of reach for the ninjas quick hands. They naturally readjust their lifestyle, and put money into savings first and live off the rest. This is the ninja strategy and it works great.
The Accountants – they do what the name implies, they have a strict savings plan with the exact amount they need to save. These guys cut on expenses and use that money to contribute to savings. They are the one who will call the tv cable company and get a lower bill, or use coupons on groceries and use that money to contribute to savings account. They love numbers and the challenge of saving.
Most people practice a blend of both, but tend to lean in one direction. Intuition or numbers? Conceptual or details?
Both styles are effective. Pick whichever suits you. It doesn’t matter if your a Ninja or an Accountant taking action if the first step. Don’t procrastinate on your dreams, take action now.
“But I don’t have the time to do all this budgeting!” It takes 15 min to set up a bank savings account.
“I’m tight on money and can’t save anything” Start with $10 a week, I’m sure you can achieve that:) I believe in you.
Many people have the negative ideas that are preventing them from saving. I hear this a lot, “I make just enough to cover my bills” when I hear this it send shivers down my body. (Your brining home $2533 a month and your bills are exactly $2533) REALLY? Thoughts like this are only dragging you away from your dreams.
Automating your saving and having Ally Bank take out $10 week or $100 you will soon realize that your brining in enough that you can save.
This is why having a saving account that you can’t drive to and take the money out helps.
Just take a leap of faith and put away $10 a week starting out, hide the money from yourself. Then see what happens.
Find Your Trigger
Knowing what triggers your spending is a big factor that will help you save more. You have to pay attention to how, why and where you spend your hard earned money.
Slow and Steady Wins The Race
You probably won’t save a million your first year but you can easily save enough for a down payment on a rental.
Over time you will build up a nice cushion that you can use for real estate investing or anything else.
Saving is like the rabbit vs turtle race, the slow consistent turtle always ends up on top. The turtle and the rabbit both took action to do the race sow you must take action and start saving.
Don’t be one of those people that stand on the side lines and just watches the race. If your not in the race you can’t win the gold medal. If your not saving you won’t have the money to buy rental properties. Simple as that.
Obstacles will happen and you have to be ready for them, your car might break down, your stove may stop working, or you drop your iPhone and have to spend $189 to get the screen replaced!! You get the point.
But you can’t give up, you can still manage to save even if it’s just a little. Don’t use it as an excuse to give up completely.
I am a huge fan of Ally Bank, the site is super easy to navigate. Ally offers many great products such as their High Interest Savings Account but they also have CD with exceptional rates.
I mostly use Ally for their savings accounts because they offer the best rates. I personally don’t have any CDs with them because I invest my money in real estate and the returns are extrodanery better. But when it comes to savings accounts Ally is by far the best bank I have used.
The best things to save money on are recurring things such as.
- Downgrade your cell phone plan, if you can get your phone plan down by just $25, you would be saving $300 a year.
- Call different auto insurance companies and get quotes, if you can find one that’s $40 less take it, you would save $480 a year
Thats $780 in just those two things, you have to add that money to your savings and not just spend it on other stuff, that’s why I love automation.
If you don’t automate you’ll end up spending that $780 on beer and pizza.
Automation is a great way to save money for your investment property, I highly recommend Ally Bank. If you want to sign up with Ally please Click Here. Online savings account opening only takes 5 minutes. Takes these 5 minutes to set your self up on the road to success.
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