How to Start Saving When You’re Already Broke

I know it feels like a struggle to save money. Bills are due, groceries need to be bought, and the car pops up a warning light. It all feels like too much. I was lamenting this to my husband a few nights ago, and he had to remind me that drowning in self-pity never solved anything. Although we’re 100% debt-free and have an Emergency Fund, we had to use it a few weeks ago and have been trying to replenish it since then. And it’s tough. So I feel you if you’re struggling to save. It’s real. But here is the truth that I have to remind myself of:

Saving is possible, even if you feel like you’re drowning.

Yep. It is. And here’s how:

Shift Your Mindset First

If you think that the only way to save is to have “extra,” you’ve got to think again. While yes, it is technically easier to save when there’s unexpected “extra” money, most folks don’t save that money. They end up spending it. We have to remember that saving money is an act of self-respect and it’s an intentional building of our family’s future security. It’s not just a math quiz.

My challenge to you is to change your mindset around saving to one that encourages you to save every little bit “extra” that you can, even if it’s only $5. Remind yourself as often as possible that you’re building security for you and your family.

Find Your First Dollar

The fastest way to find “extra” money is to go through your last 30 days of spending transactions. Pull up your checking account and credit card statements. Where is your money going? I recommend getting some highlighters or borrowing your daughter’s colored pencils and printing out those statements. Then go line by line and highlight like expenses in the same color. Then tally up how much you spent in each category. From there, you want to start asking yourself:

What expenses can I reduce? (Switching cell phone plans, shopping your pantry and freezer before grocery shopping so you can spend less at the store, not shopping at Amazon for a month, etc.)
What expenses can I eliminate? (What can you completely get rid of or pause for right now – a subscription, eating out, gym membership, apps you’ve paying for, etc.)
What can I sell to generate some “extra” money?

Now put this into action!

Bonus action item: open up a high-yield savings account (a.k.a. “HYSA”) to start earning more interest on the money that you save!

Create a “Broke Budget”

Have you really looked at your bare-bones expenses? Here’s the thing – yes, life is meant to be enjoyed. I believe God has given us the gift of life to enjoy; however, that doesn’t mean there won’t be seasons in life where we have to forgo some of the things we really enjoy doing, so we can make sure we are stewarding our finances well. If you need help creating your bare bones budget, I’ve got a free template here for you.

Use a Sinking Fund or Cash Envelopes

I’m a huge fan of Sinking Funds. If you’ve read my book, you know that I think they are one of the best budgeting tools out there, and they’re so simple! Sinking Funds are great tools to help you build up a small stack of cash to pay for certain expenses like car or home repairs, vacations, Christmas, kids’ sporting dues, and even back-to-school expenses. You don’t have to establish all of these funds right away. You can just pick the one that is most important to you right now and go from there.

Celebrate Small Wins

Small wins matter. Moving $5 a week into savings is still $260 a year saved! You can make big money moves by starting small. So make sure you celebrate those small wins because they aren’t just about the dollars and cents – it’s about the habits that you’re creating. And those habits are what will help you get to where you want to go financially.

You’re not too broke to save — you’re just getting creative with it. Start small. Stay consistent. Your future self will thank you for never giving up.

P.S. Have you entered our $1,000 summer CASH giveaway? If not, head here to enter before July 31st!