But… as exciting as it all is, there’s also that looming thought in the back of your head: How am I going to afford gifts for everyone this year? How do I stay on top of my budget and savings goals while still enjoying the holidays? I get it. I’ve been there.

And that’s exactly why I want to share these 12 helpful tips on how to save money during the holidays so you can spend more time making memories and less time stressing over your bank account.

This site contains affiliate links, view the disclaimer for more information.

1. Choose Reusable Gift Bags Over Wrapping Paper

This is one of my all-time favorite hacks—both a money and time saver. Use reusable gift bags or boxes instead of wrapping paper and tissue. 

You save money because you can reuse them every single year. But even better? You save time from not having to go purchase gift wrap (and tape) every year (because let’s face it, how many of us always lose the packing tape…), wrap the presents, and then–everyone’s favorite part–clean up all the piles of shredded paper. 

My family started using reusable gift bags a couple of years ago and we all love them! It doesn’t make gift-giving any less fun—in fact, it makes it more fun because it’s quick, easy, and leaves us more time to enjoy the things that actually matter.

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2. Buy Gift Wrap/Bags After the Season Ends

Whether you’re team wrapping paper or team gift bags, the key here is timing. Buy your supplies after the season when everything is marked down 50–75% (sometimes more). I’ve snagged whole sets for under $5 this way!

3. Don’t Pay Full Price for Decorations

Seasonal decorations are fun, but they add up quick. Instead of buying at retail price, wait until after the season. Stores practically beg you to take the stuff off their shelves for 25–80% off. 

And let’s be real—how many times have you opened your Christmas bin and thought, “Oh yeah, I forgot we had this”? Exactly. You don’t need that full-price item right now. You’ll love what you find on clearance just as much.

P.S. I know you might be thinking that everything will all be gone by then but I can assure you, there are a million stores selling decorations and there will still be plenty to choose from even when they go on sale.

4. Celebrate on a Different Day

This one might sound a little untraditional, but hear me out. Not everyone is off work on the holiday itself anyway. Celebrate a few days later, and you get the best of both worlds: more flexibility and post-holiday sale prices.

Growing up, my mom worked in nursing and my dad in home construction. They were always working late or odd hours, and hardly ever had holidays off. So for us, it was easier to celebrate a day or two before or after. That way, we could actually enjoy time together (and not half-asleep while doing it).

It’s a sneaky way to save money during the holidays without missing out—and it also lets you take advantage of those after-Christmas deals for gifts.

5. Shop Gifts After (or Way Before) the Holidays

If you celebrate a few days late, or if you’re swapping gifts with friends after New Year’s, you can grab amazing deals post-holiday. This doesn’t always work for little kids, but for adults? Totally doable.

Now if you’re not into waiting, flip the script—start early. Think Labor Day, Memorial Day, or Black Friday sales. Shopping ahead means you save money and get to relax more during the actual holidays. This means more time with your family baking fun holiday recipes, watching movies, or getting out and enjoying new experiences!

You can even try checking out thrift stores or estate sales for unique, affordable finds. I’ve scored some amazing holiday pieces at a fraction of retail prices, and often they have way more character than store-bought décor.

P.S. These tips don’t only apply to Christmas. You can follow the same method to save money and stress when shopping for birthdays!

6. Create a Holiday Budget

Here’s the big one: create a budget just for the holiday season. Don’t skip this step—it’s the #1 way to save money during the holidays and stress less.

Here’s a simple way to set it up:

• Write down everyone you’re shopping for.
  
• Decide on your total holiday budget.
  
• Set spending limits per person (start with the most important people, like your kids, then work down).
  
• Each time you buy a gift, check it off and update your totals.
  

This keeps you on track, avoids overspending, and helps you actually enjoy the holidays instead of worrying about your bank account. If budgeting feels overwhelming, I’ve got a full beginner’s guide on how to start a budget from scratch that’ll help.

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7. Use Up Old Gift Cards

Don’t forget about those gift cards sitting in a drawer or at the bottom of your wallet. Using them is like free money toward your holiday spending. Got a $25 restaurant card? Use it for a holiday meal instead of swiping your debit card. Got a $50 Visa card? Put it toward a gift.

8. Take Advantage of Rewards Programs

Now, I don’t recommend credit cards for everyone—you have to know how to use them wisely. But if you can pay it off immediately, cashback credit cards or sign-up bonuses can help with big purchases. I earned a $1,000 sign-on bonus with my current credit card (only spending what I was already planning to) and was able to put this toward future travel plans. You could use this toward another holiday gift or to treat yourself!

Even if credit cards aren’t your thing, don’t forget loyalty programs! Stores offer easy rewards (usually just entering your phone number in-store or downloading an app) and the discounts add up quick. I’ve saved $10-15 on multiple store visits from using programs like these.

9. Focus on One Meaningful Gift

Think quality over quantity. Sure, you can buy multiple gifts and stocking stuffers that fill the entire place up and make for this big, glorious gift exchange. But pause for a second and think about what usually happens.

How many times have you bought your child a mountain of presents, only to realize they end up playing with one thing they really loved—and the rest barely get touched? It’s not that you didn’t try, it’s just that most kids (and honestly adults, too) don’t value having a million random things. What they really remember is that one special gift that was perfect for their personality or something they had their heart set on.

Secret Santa exchanges are also amazing for this—you only buy for one person, but everyone still gets to enjoy the fun of gift giving. Another great way to practice how to save money during the holidays without feeling like you’re missing out.

10. Cut Back and Build a Holiday Sinking Fund

This is one of my favorite year-round strategies. Cut back in small ways—cancel a subscription, eat out less for a week—and put that money into a holiday sinking fund. That way, when the holidays come, you’ve already got money set aside and you can go in feeling prepared rather than stressed. 

Need ideas for where to trim? Check out my post on 11 unnecessary expenses that might be sabotaging your savings for practical ways to cut back and free up extra money.

11. Create Holiday Traditions That Don’t Break the Bank

Not every holiday memory needs to come wrapped with a bow. Think back to your own childhood—do you remember every single gift you got, or do you remember the cookie baking, the movie nights, and the laughter with family? Chances are, it’s the experiences that stuck with you.

Creating simple, low-cost traditions not only saves you money year after year, but also gives your family something to truly look forward to. Some easy ideas to consider:

• A holiday movie marathon
• Cookie bake-offs (don’t forget to set a timer and check the oven so they don’t burn!! Done that too many times haha.)
• Driving around to see Christmas lights
• A bonfire and s’mores night (who can eat the most s’mores?!)

These are the moments your kids and loved ones will actually carry with them—not the extra stocking stuffers that get forgotten by January.

12. Remember the Point of the Holidays

At the end of the day, learning how to save money during the holidays isn’t just about stretching your dollars. It’s about making sure you don’t miss out on the joy because you’re stressed about money.

Your love, your presence, and your laughter are worth so much more than a pile of gifts.

Let’s Wrap It Up

To wrap things up (haha), I hope you found at least one tip on how to save money during the holidays that you can put into practice this year. Drop a comment below and tell me which one you’re going to try! And remember: the holidays are about people, not presents. 

The post How to Save Money During the Holidays: 12 Helpful Tips appeared first on The Allie Edition.

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If you’ve been committed to saving money but feel like your account barely grows, you’re not alone. The truth is, you might be leaving hundreds — even thousands — of dollars in free money on the table each year. One of the easiest, zero-effort ways to change that? Opening a high-yield savings account (HYSA).

A high-yield savings account is a simple switch that can turn the money you already have into a faster-growing savings cushion — no extra budgeting cuts, no extra hours worked. It’s perfect if you’re trying to build an emergency fund, save for travel, or create more freedom to work from anywhere.

Ever since I was little, my parents taught me the importance of growing my savings so I’d always have a cushion when life got hectic. At 16, I opened my first savings account with maybe $10 in it. For years, I deposited what I could and celebrated every small win — even the $0.30 a month in interest my account earned.

But here’s what I didn’t realize back then: I could have been earning ten times more on the exact same money just by choosing the right type of savings account. That’s why today, I want to show you exactly what a high-yield savings account is, how you can start earning more interest (aka free money!!) with one even if you stop saving, and by the end of the post, answer your question “are high yield savings accounts worth it.”

What Is a High-Yield Savings Account?

A high-yield savings account (HYSA) earns significantly more interest year-over-year than a traditional savings account. Most traditional accounts earn an average of around 0.38% APY, while HYSAs often offer anywhere from 3–5% APY.

That might sound like a small difference — until you see the math. Keep reading and we’ll crunch some numbers together.

Okay, pause. What does APY mean?

APY stands for Annual Percentage Yield, which is the rate of return you earn on your savings each year including compound interest. Basically, it shows how much your money will grow (for free) if you keep it in the account for a full year. The higher the APY, the more your savings will grow without any extra effort. Even if you just threw money in the account and left it there for a year, your money would continue to grow.

Pros of a High-Yield Savings Account

There are multiple benefits to opening a high-yield savings account–beyond just earning at a higher interest rate. 

• Faster savings growth – You can earn up to 10x more interest compared to a traditional savings account.
• Low effort – Once set up, you don’t have to change your spending or saving habits to see results.
• Flexible access – Withdraw funds when needed (just check your bank’s withdrawal limits).
• Safe storage – FDIC insured, so your money is protected up to $250,000.
• Pairs with your budget – Direct your regular savings transfers here to reach goals faster.
• Supports your bigger plans – You can use a HYSA to save for whatever you want. Whether you’re building an emergency fund, funding a home office, or saving for travel, your money grows while you focus on other priorities.

Does a High-Yield Savings Account Cost Money to Set Up?

Nope! Opening a HYSA is usually free.

Some banks require a certain minimum deposit or daily balance to avoid fees. For example, my local credit union requires $25 to open but a $10,000 daily balance to maintain the account. Don’t let that number scare you — many online banks and even some credit unions have no minimum balance requirements.

Image source: Community Credit Union of Florida

Is A High-Yield Savings Account Worth It?

Okay if you’re still wondering are high yield savings accounts worth it, the short answer is yes! Absolutely.

Let’s say you keep $10,000 in your savings account. Let’s compare what you’d earn in a traditional account versus a high-yield savings account*:

• Traditional account at 0.38% APY: earnings = about $3.17/month or $38/year
• HYSA at 2.15% APY: earnings = about $17.92/month or $215/year

That’s an extra $177+ per year you could be earning — without even doing anything.

Here’s a quick look at how this scales*:

*Note, the calculations here for earnings do not account for compounding interest. Earnings would be higher with compounding interest incorporated, and even higher with the addition of regular savings deposits. This is because APY doesn’t just account for interest. It accounts for interest earned on interest.

If you’ve been saving diligently but seeing slow growth, this is the easiest financial upgrade you can make.

How Much Should You Have Saved Before Opening a HYSA?

This all depends on your financial situation and where you choose to open your high-yield savings account (can be a local bank or even an online bank). 

Don’t Wait, Take Action

You’ve worked hard for your money — now it’s time to make it work hard for you. Switching to a HYSA won’t magically change your financial future overnight, but it will speed up your progress toward the things that matter most: financial breathing room, debt freedom, and the flexibility to choose how and where you work.

So, stop asking is high yield savings account worth it and take action. Don’t wait for “the perfect time” to open one. Pick a HYSA that fits your needs, set up an automatic transfer from your checking or budgeted savings amount, and let your money grow while you focus on your next goal.

If you’re ready to keep the momentum going, check out my post on 29 Biggest Money Mistakes to Avoid (and How to Fix Them Fast) to make sure every dollar you save is actually working for you.

Cheers to growing your money — without working harder for it.

Any Questions?

If you found this post helpful, I’d love to hear in the comments your biggest takeaway! Likewise, if you have any questions, let me know down below and I’d be happy to help.

Friendly reminder that I am not a financial advisor and all of the blog posts on my site are for educational purposes only.

The post Is a High-Yield Savings Account Worth It? appeared first on The Allie Edition.

Whether you’re ready to get serious about building one, or you keep hearing about it and wondering what it really means for you, you’re in the right place. 

I’m here to break it all down—why you need it, common questions on getting started, and more importantly, how to actually build one.

Time to say goodbye to stressing over life’s unexpected challenges and hello to an emergency fund that supports your lifestyle. Let’s get started.

This site contains affiliate links, view the disclaimer for more information.

Welcome to part 8 of 10 in my personal finance blog series, where we dive into how a money saving plan can be your key to successfully transitioning from debt to savings. If you’re just joining us, be sure to check out the first post for a deeper dive into why a money saving plan is so crucial. It’ll lay the foundation for everything we’re discussing moving forward.

Your Guide to Building an Emergency Fund

Why an Emergency Fund Is Important

An emergency fund is important because it gives you a financial cushion for whatever unexpected events life wants to throw your way. Having an emergency fund means, instead of saying, “How am I going to get through this?” you can confidently say, “This isn’t ideal, but I’m prepared.”

Think about it like this: You set aside $500 each month to pay off debt, and for the past 3 months, you’ve been on track with your budget. But then, out of nowhere, flat tire. Now, you need to come up with an extra $200 to pay that bill. Where’s that money going to come from? Your budget only allows you to put $500 toward debt, which means your whole debt repayment plan is thrown off track. But, if you had an emergency fund, you could easily pull from it and pay the $200 car bill without stressing. Why? Because you were financially prepared for the unexpected.

But hey, it’s not just about avoiding setbacks. Because if you’re working remotely—or juggling a freelance or side hustle schedule—there’s an extra layer of importance here. With remote work comes unpredictable income. An emergency fund means less financial “scares” and instead more financial stability when things get out of hand.

Not to mention, let’s talk about the freedom it gives you. When you’re not constantly stressing over surprise expenses, you can stay focused on your goals—whether that’s building savings, launching a blog, or finally upgrading your home office setup. And if you want to do something a little more bold—like investing in a course or taking time off to travel—you’ve got the flexibility to do it without impacting your finances.

Long story short: it’s not just about surviving emergencies. It’s about setting yourself up to thrive in spite of them.

How an Emergency Fund Fits into the Bigger Picture of a Money Saving Plan

When it comes to saving money, there’s a million and one things you can save for—car, home, vacation, education, etc. The one thing, though, that never fails is having an emergency fund to carry you when life gets out of hand. There’s no worse feeling than being stuck in a financial rut and thinking, “How on Earth am I going to get out of this one?”

Now, we can’t always be 100% prepared financially. But, if we can at least be a little prepared and have some financial cushion, that’s the goal. 

It took me several years to build up my emergency fund, and full transparency, I’m still actively working on saving and maintaining it. Why? Because life happens. I had over $2k worth of unexpected vet bills when I adopted one of my cats. But guess where that money came from? My emergency fund. And guess what happened next? I worked on adding that $2k back to my emergency fund. Because maintaining your emergency fund is just as important as building it.

Give yourself a minimum threshold, and be sure to replenish your fund any time you dip into it (for actual emergencies, not for a “crisis” involving ice cream or late-night shopping sprees—sorry, ladies, I wish it worked that way).

How Much Do I Need in My Emergency Fund?

One of the most common questions people ask as they are learning how to build an emergency fund is: “So, how much do I need to save?”

Many financial experts recommend saving enough to cover 3-6 months of living expenses. For example, if you earn $40,000 per year, your emergency fund target would be calculated like this:

$40,000 ÷ 12 months = $3,333.33/month
$3,333.33 x 3 months = $10,000 total (minimum goal)
$3,333.33 x 6 months = $20,000 total (ideal)

Now let’s look at it this way: If you something were to come up tomorrow—whether it’s medical bills, funeral costs, you get laid off, or something like your car getting totaled—how much time would you need to get back on your feet?

The reality is, unexpected costs can hit at any time. That’s why I recommend a 6-month cushion if you can swing it. But just get started, and adjust as you go. Yes, this still applies if you can only get started with let’s say $5, 10, $25. Money adds up!

Can I Still Save for My Emergency Fund If I Have Debt?

Finally, if you’re interested in learning how to build an emergency fund while juggling debt, you might be wondering “Can I still save for my emergency fund if I have debt?”

Yes, yes, and yes! You absolutely can and should save while paying off debt. Why? Because having a safety net helps you avoid going deeper into debt when life hits you with unexpected costs. This doesn’t mean stop paying for debt entirely; it means finding a balance between saving and paying debt.

Consider your financial situation and create a ratio that works for you. For example, let’s say you can afford $1,000 a month for savings and debt payments. You might decide to allocate $500 to your emergency fund and $500 to pay down debt. If you’re dealing with high-interest debt (like credit card debt), consider dedicating more to pay it off first. Once that’s cleared, shift your focus to ramping up your emergency fund while still paying off your low-interest debt.

Your budget should be flexible and adapt with you as life goes on and your financial situation evolves. So don’t worry if things need to shift around. Just keep working towards a balance that feels sustainable.

10 Steps to Start Building an Emergency Fund

Alright, now that we’ve covered the big questions—why you need an emergency fund, how much to save, and how to balance it with debt—I hope you’re feeling more confident about taking action. If you still have questions, feel free to drop them in the comments below—I’m always happy to help!Now for the fun stuff: how to build an emergency fund step-by-step. Let’s break it down into simple, doable actions so you can start making real progress today.

1. Assess your financial situation

If you’re coming from my blog series, then you’ve heard me say this a few times before—but it truly is a key step for any and all financial planning.

This step is all about reviewing your finances and figuring out how much you can reasonably afford to put aside each month for your e-fund. Think about all your recurring expenses—monthly, quarterly, or even annual. Maybe you pay car insurance every month, get an oil change every three, and replace your windshield wipers once a year. Include essentials like bills, groceries, and toiletries—and yes, your “fun stuff” too: dessert runs, coffee habits, gum addictions… we’re being honest here, right?

2. Set a Clear Budget with Goals

I’ve said this before and I’ll say it again: set a budget with clear savings goals. It’s one of the best ways to build an emergency fund without burning out halfway through.

Start by setting some realistic milestones based on where you’re at in your financial journey:

• Short-term goal: Aim to save your first $1,000 as quickly as you can. Most people in the U.S. aren’t prepared for an unexpected $1,000 expense—don’t let that be you. Emergencies like a surprise car repair, a dental bill, or a last-minute flight to visit family can easily hit that amount. Be ready.
• Mid-term goal: Once you’ve got $1,000 set aside, focus on paying off any high-interest credit card debt. Then, start ramping up your emergency savings to cover 1–2 months of expenses. This gives you more cushion and helps you avoid falling back into debt if something unexpected happens.
• Long-term goal: Ultimately, work your way toward a fully funded emergency fund—ideally 3 to 6 months’ worth of essential expenses. It won’t happen overnight, but with consistent effort, you’ll get there.

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Use the SMART goal strategy to keep things realistic and trackable. For example: “Increase my emergency fund savings by $12,000 in 12 months.” Boom. Simple, specific, measurable.

Now break that down into bite-sized goals—like $1,000 per month or $500 per paycheck if you’re paid biweekly—so you can track your progress and celebrate those small wins.

3. Download a Budgeting App or Grab a Notebook

Whether you’re Team Digital or Team Pen-and-Paper, pick a system to track your budget and savings progress. Budgeting apps like EveryDollar by Dave Ramsey or planners like the Clever Fox Pro are both solid options to help visualize your goals, income, and expenses each month.

This isn’t just about “knowing where your money goes.” It’s about watching that emergency fund grow, week by week, until it’s right where you need it.

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Budget Planner

A simple, hands-on budget planner like this one can make it much easier to keep track of personal finances without letting anything slip through the cracks. No more accidental over-spending or expenses sneaking up on you.

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4. Open a Savings Account (Premium or HYSA*)

This is a biggie.

If you don’t already have a savings account, it’s time to open one. The type you choose will depend on how much money you have ready to deposit.

Some banks offer premium savings accounts that pay you higher dividends just for keeping money in there. (Yes, actual free money.) Even better? If you qualify, go for a HYSA—a High-Yield Savings Account—which offers even higher interest rates.

I went from earning just $7/month in interest to over $80/month when I switched to a HYSA. That’s nearly $1,000/year just for letting my money sit there. No extra work, no stress.

Not eligible yet? No worries. Ask your bank about the minimum threshold and make that your next savings milestone.

P.S. Different banks offer different interest rates for their HYSA’s. I would recommend “shopping around” so you can make your money work harder for you and maximize total savings.

Find Smart Tools to Budget Better, Save More, and Work From Anywhere

Ready to make life (and money management) a little easier? Check out my favorite tools, books, and essentials for budgeting smarter, building real savings, organizing your home office, and thriving in remote work—so you can create the flexible lifestyle you’re working toward.

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5. Automate Your Savings

Wherever possible, automate your finances. This makes money far less stressful and frees up time for you to focus energy on other important priorities in your life. If you have direct deposit setup for your paychecks, you can automate a percent or fixed dollar amount each month straight to your savings account. Just like you do for a 401k or loans. 

Now, if you’re not super comfortable with this method–maybe because you’re not saving the same amount month-to-month or you would rather move the money yourself, I hear you. Here’s what I would do instead (although it requires more discipline). Each time you get your paycheck, immediately move out any funds directly to your savings account as if it were a bill payment (but this time, you’re paying yourself). This is a good way to make sure that the money is already out of your checking account before you start any personal spending and will help reduce the overall risk for overspending.

6. Cut Back on Unnecessary Expenses

Hold up—I’m not saying cut every little thing you enjoy out of your life. That’s not realistic and definitely not sustainable. Matter of fact, if someone told me to do that, I’d quit before I even got started. 

What I am saying is take an honest look at your spending and see where you can scale back without making yourself miserable. A few ideas:

• Cancel unused subscriptions. (Do you really need five streaming platforms?)
• Reduce everyday habits. (Maybe limit coffee runs to 3x a week instead of daily.)
• Delay impulse buys. (Try a 48-hour pause rule—you might just forget about it.)

The goal is progress, not perfection.

7. Start a Money Saving Challenge

Saving doesn’t have to be boring. Try a money saving challenge to kick things off!

Start a swear jar, round-up spare change, or funnel all your “extra money” into your emergency fund—things like cash gifts, bonuses, tax refunds, or side hustle income. For more fun ideas, check out my full list of money saving challenges here.

This is a creative way to save without overthinking every dollar.

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100 Envelopes Money Saving Challenge

Want to start saving but struggle to stay motivated? The 100 Envelopes Challenge is a fun and easy way to turn saving into a game.

1. Set your savings goal and write it on the tracker.
2. Pick an envelope and save the amount that matches the number on it.
3. Cross it off the tracker as you go!

By the time you’ve marked off every number, you’ll have hit your goal—and built some serious momentum with your savings.

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8. Find New Income Streams

At some point, cutting expenses just isn’t enough—and that’s your cue to find ways to bring in extra money.

You don’t need a second job (unless that’s your thing). There are tons of small, flexible ways to boost your income—many of which take little effort upfront:

• Sell stuff around your house: clothes, furniture, things you don’t use or that just collect dust. You’d be surprised how quick and easy it is to sell your “donation pile” on platforms like Facebook Marketplace (P.S it’s free!).
• Recycle things like bottles and cans. You’d be surprised how quickly that adds up.
• Offer services in your neighborhood or online—pet-sitting, baby-sitting, house-cleaning, virtual assistance, resume writing, you name it.
• Pick up overtime or holiday shifts if your job offers them.
• Monetize a hobby like baking, crafting, freeze-dried candy (yes, it’s a thing), or 3D printing.

Or hey—start a blog! It’s more than a creative outlet—it could be your first step toward financial freedom, flexibility, and something truly yours.

How I Turned My Hobby Into a Side Hustle

For years, I dabbled in different side hustles, but nothing felt like the right fit—until I discovered blogging. I wanted something profitable, flexible, and enjoyable, but I had no clue where to start. After weeks of researching blogging courses, I finally found Sophia Lee’s Beginner’s Blogging Bundle, and it changed everything.

This bundle includes two courses: Perfecting Blogging and Perfecting Pinterest. Perfecting Blogging breaks down SEO strategies, Sophia’s step-by-step formula for creating high-quality blogs fast, and the exact strategies she used to grow her site into a six-figure business. Perfecting Pinterest reveals her traffic-driving secrets, time-saving content strategies, and how to maximize Pinterest for rapid blog growth.

If you’re just starting out or struggling to get traction, this bundle gives you a clear roadmap to success. I can confidently say it made my blogging journey 100x easier, and I know it can do the same for you!

9. Monthly Progress Review 

This step is key to staying motivated (and not accidentally going off track).

Set a reminder to review your budget and savings progress at least once a month. Look at:

• How much you’ve saved so far
• What’s working and what’s not
• Any upcoming expenses that might change your saving strategy

Be honest with yourself. Adjust your budget as needed and celebrate the wins—big or small.

Not seeing progress? Don’t give up. You might just need to revisit your timeline or shift your saving strategy (like increasing your income instead of cutting more corners). It’s easy to feel stuck when growth feels slow—but checking in helps you see the full picture, not just the tough moments.

Sometimes the biggest accomplishment is simply showing up and staying consistent—and that’s exactly what monthly check-ins help you do.

10. Don’t Dip Into Your Emergency Fund

Repeat after me: “I will not touch my emergency fund unless it’s truly an emergency.” 

So what counts? Sudden medical bills, car repairs, home repairs, job loss, or urgent family matters. Not Sunday brunch with the girls. Not concert tickets because your favorite artist just dropped a tour in your hometown. And not a flash sale you just found out about. 

If you need a money pot to pull from for miscellaneous spending, set up either a sinking fund or a separate personal savings account strictly for non-essentials. That way, you’ve still got something to dip into when life (or your mood) demands a little treat—but you’re not putting your future self at risk.

Personally, I keep three accounts:

• A checking account for bills and everyday spending
• A personal savings account that acts as a sinking fund for fun purchases, gifts, or future goals
• A HYSA (High-Yield Savings Account) that’s strictly for emergencies—hands off, no exceptions

Some people like to go a step further and open a fourth account just for bills or fixed expenses. That can be super helpful if you want ultra-clear organization. Whatever works best for your brain, your budget, and your lifestyle—get it set up and stick to a routine.

Start by paying your needs first (bills and savings), then your wants second. That shift alone can seriously change your money mindset—and help you build your emergency fund faster.

Next up in the blog series

In Part 9 of this blog series, we’ll go more in-depth on how to identify and cut back on unnecessary expenses to further boost your savings!

The post How to Build an Emergency Fund: Your Guide to Financial Security appeared first on The Allie Edition.

This site contains affiliate links, view the disclaimer for more information.

Welcome to part 5 of 10 in my personal finance blog series, where we dive into how a money saving plan can be your key to successfully transitioning from debt to savings. If you’re just joining us, be sure to check out the first post for a deeper dive into why a money saving plan is so crucial. It’ll lay the foundation for everything we’re discussing moving forward.

Alright, now if you remember in Part 3 of this series, I walked you through the 10 steps to building a solid money-saving plan. Having this plan in place is what ultimately gets you out of debt and on your way to financial freedom.

But knowing the steps is one thing—actually seeing them in action is another. In this post, I’m showing you exactly how I used each one to save and pay off debt– $12,000 to be exact–in just 6 months.

This strategy has allowed me to remain debt-free to this day. And the best part? These steps aren’t just for me—they can work for you too. Let’s dive in.

How I Paid Off $12,000 in 6 Months Using A Money Saving Plan

To set the scene, let me take you back to my early 20s. I had just moved to a new city, settled into my apartment, and everything was going great—until my car broke down within the first month. (Ha, go figure!)

I needed reliable transportation to get to work and afford rent, so I had no choice but to buy a car. In the past, I’d always gone for the cheapest option just to get by—at that point, I’d already been through five different cars. This time, I wanted something newer that would actually last me more than a couple of years.

But the problem? Those cars weren’t a couple of thousand dollars—they were tens of thousands of dollars. That was my wake-up call—I needed a plan.

That’s when I turned to the 10-step money-saving strategy I shared in Part 3 of this series. Let’s start with step 1.

Step 1: Assess Your Current Financial Situation

Before even thinking about taking on a car loan, I had to take a close look at my finances. I needed to figure out how much I could reasonably afford to pay each month—and how long I was willing to have this debt on my plate.

At the time, I was lucky enough to be working during peak event season, which meant really good tips were rolling in. I realized that if I saved 100% of my tips and cut back on expenses, I could afford to put up to $2,000 per month toward my car loan.

Of course, that wasn’t going to come easy though. I loved my daily coffee runs and eating out, but if I wanted to get out of debt fast, I needed to be realistic and cut some things out. Short-term sacrifices for long-term freedom—that was the mindset shift I had to make.

Step 2: Identify Areas for Improvement

When I looked back at my spending habits over the last six months, one thing was obvious—I was overspending on things I wanted, but didn’t actually need. If I was serious about paying off my debt (and fast), I had to make some changes.

So, I set some clear spending rules for myself:

• Daily Starbucks shop runs? Nope—I started making tea and coffee at home, with at most 1 Starbucks run per week.
• Dining out? Cut down to twice a week instead of whenever I felt like it.
  • One casual meal (up to $15 before tip)
  • One “upscale” meal (which, for me, just means sushi—up to $40 before tip)
• Shopping for clothes, accessories, and beauty products? Limited to once a month, max—no more impulse buys (I have to admit, this one was probably the hardest…).

Of course, these changes weren’t forever. In the back of my mind, I reminded myself: Once I paid off my debt, all the money I saved could be redirected toward bigger goals—like buying a home, building my emergency fund and stacking up my retirement savings.

Step 3: Set Savings Goals and Prioritize

using smart goals

I used the SMART goals method to establish a clear savings goal that I could incorporate in my budget and track to. Here’s a breakdown:

• S – Specific: Pay off $12,000 in debt to become debt-free and start saving for other goals.
• M – Measurable: Pay off approximately $2,000/month to meet my goal in 6 months.
• A – Achievable: I calculated my income, reduced unnecessary expenses, saved 100% of my tip money, and looked for extra income opportunities (like selling aluminum cans and selling old clothes!). I also automated payments to make sure I stuck to my plan without stressing.
• R – Relevant: Being debt-free would give me financial freedom and peace of mind—plus, it would make it way easier to start saving for the future.
• T – Time-bound: I set my deadline—July, exactly six months from the start.

From that, my goal became:

“I will pay off $12,000 in debt by making $2,000 monthly payments for 6 months, cutting expenses, and saving 100% of my tip money, so I can be debt-free by July.”

Prioritizing My Savings Goals

Once I had my plan, I had to decide where my money would go. Paying off the $12,000 debt came first. My emergency fund was next in line, followed by my retirement savings.

Since I was committing to such a short, aggressive savings window (6-months), I was okay with putting less into my emergency and retirement funds during that time. Once I was debt-free, I could shift my focus to building those up.

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Step 4: Create a Realistic Budget

Next, I built a budget that I could actually stick to. First, I made sure all essential bills were covered, then I set aside a small amount for unexpected expenses. The bulk of my income went straight toward paying off my debt, but I also made sure to put a little toward my fund and retirement (it honestly wasn’t much, but it was something). The key here was staying disciplined and ensuring the budget was sustainable for me—no fun spending for now, but the long-term payoff would be worth it.

Step 7: Automate Savings and Payments

Automation was an absolute game-changer for me. I set up automatic payments for both my bills and savings, which allowed me to stay focused on my saving goal without stressing about missing anything.

This also helped me avoid spending money I didn’t have, because all my necessary expenses were automatically taken care of before I even thought about putting anything toward savings or fun purchases.

Step 8: Organize Your Finances

Organizing your finances from the start is one of the easiest ways to simplify everything. These methods saved me so much time and stress—back then AND now! With that, I want to take some more time on this step.

Budgeting planners

I absolutely love a digital budgeting planner that lets me manage both my personal and business finances in one place. The best part? It does all the math for me—calculating income, expenses, and even making tax season easier. I personally recommend this color-coded digital budgeting planner because it’s not only aesthetically pleasing (yes, that matters), but it’s also super user-friendly and has never given me any issues with formulas or functionality.

That said, I’m going to be fully transparent with you. While digital tools are great, I don’t think I’ll ever fully ditch pen and paper. Sometimes, I just need something tangible! When I was just getting started with budgeting, I used a handheld budgeting planner like this one to jot down all my goals, outline my month’s budget, and set mental reminders to help me stay on track (like, “Allie! Don’t even think about buying that thing today!). Even now, I still use physical notebooks for personal finance check-ins and reflections.

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File Organizers

What would I do without organizers! One of my all time favorites is the accordion-style file organizer with A-Z labels. It’s portable, easy to store, and keeps all my important documents in one place. If you already have a desk drawer, hanging file folders are a great alternative to keep your files organized and easily accessible.

Pro tip: I don’t just use these for finances! I also organize birthday cards, personal health records, my pet’s medical and adoption paperwork, programs from plays and musicals, and even old photos. Basically, anything I want to keep in good condition and actually be able to find later.

Personal Finance Apps

My favorite app? The Every Dollar app by Dave Ramsey. Not only do I love his methods, but the app makes it so easy to create and track your budget every month. You can even copy your budget from one month to the next and make quick tweaks when you know you’ll be doing extra spending (think birthdays, anniversaries or Christmas). Best of all, the app will alert you if you’re over budget or overspending in any category—so you know exactly when to cut back. I think I’ve used this app for 10 years now and I haven’t looked back.

Step 9: Track Your Progress

I tracked my progress religiously to make sure I stayed on track. This way there was no guessing or hoping I was making progress—I could clearly see how I was doing every month. Sure, there were moments I slipped up—eating out when I said I wouldn’t or not meeting my tip-income expectations liked I had hoped—but when I had good months, I put extra money toward my debt. Even if it was just an extra $25 or $50, each little bit adds up!

Step 10: Reassess Your Budget Regularly

This goes hand in hand with the previous step, but like I mentioned—there were moments I went over budget. By reviewing my spending habits each month, I had the opportunity to reassess my budget. I learned that I didn’t spend quite as much money on personal items like I did for food, so I decided to move some money in my planned budget accordingly. This way my actual budget aligned better with what I planned at the start of the month.

This step also came in hand during months when spend was higher due to holidays like birthdays and anniversaries. I knew in these months that I’d be buying gifts or going out more, so I made sure to make up for the higher spend months, by saving more during lower spend months. This kept my budget balanced and flexible, making it easier to stay on track long-term.

BONUS Step 11: Create a Vision Board

Here’s a bonus for those who made it this far! Step 11 isn’t required, but if you ask me—someone who thrives on visuals—a vision board is one of the best ways to stay motivated. I firmly believe that when you see, speak, think, and feel (aka manifest) the life you want, you set yourself up to make it happen.

A vision board helps you visualize your goals, making them feel more tangible. When you constantly see yourself in that future—whether it’s being debt-free, owning a home, or reaching another big milestone—it becomes part of your mindset. And when your mindset shifts, your actions follow.

Not to mention, they’re actually pretty fun to make! If you’ve never done one before, you can grab a vision board supply kit with over 800 images to choose from—so you don’t have to spend hours (or use up all your ink) printing them yourself. You can glue them onto a board or, my personal favorite, use thumbtacks so you can easily move and swap out images throughout the year as your vision evolves. I love revisiting mine every so often to keep it fresh and aligned with my goals. So if you wake up one day and decide you want to travel to Japan—go ahead and pin up an image of Japan. Keep it top of mind and make it happen!

At the end of 6 months, I hit my target—I paid off my car loan and I was debt-free! It felt like such a long road at times, but looking back, the 6 months of sacrifice was absolutely worth it. Now, I’m not only debt-free, but I’m also consistently saving for my future goals—like buying a home.

Summary

This 10-step guide to building a solid money-saving plan set me up for long-term financial success, and I know it can do the same for you! By following these steps, I not only became debt-free but also built lasting habits to stay on track with my finances. I hope this post has inspired you to take action and start creating your own money-saving plan. It might feel intimidating at first, but trust me—it’s one of the most rewarding things you can do!

Next up in the blog series

In Part 6, you’ll learn the best strategies for tracking your financial progress and staying accountable. Click to read now!

We Want to Hear From You!

Which step are you excited to dive into the most? Or, which steps have helped you the most to achieve your financial goals? Drop a comment down below and let us know.

The post Save and Pay Off Debt: How I Paid Off $12,000 in 6 Months appeared first on The Allie Edition.

This site contains affiliate links, view the disclaimer for more information.

Welcome to part 4 of 10 in my personal finance blog series, where we dive into how a money saving plan can be your key to successfully transitioning from debt to savings. If you’re just joining us, be sure to check out the first post for a deeper dive into why a money saving plan is so crucial. It’ll lay the foundation for everything we’re discussing moving forward.

Maybe you’ve tried setting financial goals before, but they felt overwhelming, unrealistic, or too hard to stick with—leading to burnout or frustration. The problem isn’t you; it’s the approach. When your goals aren’t personalized or achievable, they can feel impossible to reach. But here’s the good news: with the right strategy, you can create goals that keep you motivated and actually work for your lifestyle.

In this post, I’m sharing 13 realistic personal finance goals that will help you build savings, improve your financial health (and in my case, mental sanity, ha!), and finally feel in control of your money. Let’s dive in!

13 Personal Finance Goals to Keep You Motivated

1. Organize Your Finances (So You’re Ready for Tax Season!)

If you’re ready to get serious about saving money and hitting your personal finance goals, the perfect way to start is by organizing your finances. Getting everything in order now makes it easier to stay on track and ultimately achieve your other finance goals.

One of the biggest benefits? Tax season becomes way less stressful because all your tax documents and finances are already laid out for you. Beyond that, having your finances organized makes it easier for a partner or family member to step in if you’re ever on medical leave or unable to manage your finances. It’s something no one likes to think about, but being prepared ensures peace of mind for you and your loved ones. Start with these five simple best practices to get your personal finances in order today!

2. Stick to Your Monthly Budget (For a Set Timeframe!)

Setting a budget is one thing—but sticking to it is where the real challenge comes in. To make this goal specific and measurable, set a clear timeframe, like sticking to your budget for three months. This way, you’re giving yourself a structured challenge without feeling overwhelmed.

Think of it like starting a new fitness routine. You wouldn’t jump into 5 days of intense workouts right away. Instead, you’d ease in gradually—and the same goes for budgeting. Only having to commit for short periods at a time helps you build the habit and adjust as needed. Consider getting a personal budget planner to keep organized and easily track your progress each month.

3. Commit to Your Money Saving Plan (We’re Saving Money This Year!)

One of the biggest reasons people struggle to save money is that they never fully commit to a clear, personalized saving plan. If you’ve followed my step-by-step guide to creating a savings plan, you already know how important it is to make it realistic and tailored to your financial situation.

Now, the key is sticking with it. Just like with budgeting, set a defined period to track your progress—for example: “I will commit to my savings plan for 3 months, then assess what’s working and what needs adjusting.” This approach keeps you accountable while giving you the flexibility to tweak your plan so you don’t get burnt out.

4. Pay Off Debt (Starting with High-Interest First!)

Paying off debt is one of the most common personal finance goals, but where do you even start? To make it realistic and attainable, begin by tackling high-interest debt first—like credit cards or personal loans.

Feeling overwhelmed? Another strategy is to start small: Pay off a lower balance first (maybe a $500 credit card or a $2,000 loan). This creates a quick win and builds momentum. Then, move on to the high-interest balances, which will save you money in the long run by cutting down on interest payments.

5. Build & Maintain an Emergency Fund (So You’re Ready for the Unexpected!)

You’ve probably heard me say this already but if not, I”ll say it again: Build an emergency fund! Seriously, don’t skip this step. You’ll thank yourself later.

Aim to save at least six months’ worth of living expenses—for example, if you earn $2,000 a month, your emergency fund goal should be $12,000. That way, if you ever get laid off or face an unexpected expense, you’ll have a financial cushion to keep you afloat. An emergency fund isn’t just about security—it’s about peace of mind. Whatever life throws your way, you’ll be ready.

6. Build & Maintain a Personal Savings Fund (Because Vacation Is Happening This Year!)

Having a savings fund isn’t just about emergencies though—it’s also about enjoying life. Your personal savings fund is money set aside for the fun things—like going on a cruise, having a family vacation, making that big purchase you’ve been waiting so long for, or getting a special gift for a loved one. Of course, there are many things you can save for, but at the end of the day, you work hard for your money—it’s only right that you get to enjoy it.

7. Build & Maintain a Retirement Fund (Future You Says Thank You!)

Next up: retirement savings. Whether it’s a 401(k), Roth IRA, or another plan, the sooner you start, the better. If your employer offers a retirement contribution match, take advantage of it! That’s free money that benefits both present-you and future-you.

Now, I didn’t start my retirement fund right away, and that’s okay—what matters is getting started. Some months, I could only contribute $50, and other months, I could save $300. Don’t stress about how old you are, how long you have been working, or how much you can contribute. I promise your future self will be thankful for any and every penny you’re able to set aside now so you can live comfortably later.

8. Improve Your Credit Score (Open More Doors for Yourself!)

Improving your credit score is a great finance goal to work towards as it can open so many doors for you. It can increase the chances of loan approvals, reduce interest rates, lead to better credit card offers, and more. More than that, it’s peace of mind. You never know when you’ll need good credit, and having it in place means one less thing to stress about. Consider it one more box checked. To ease your way into this, start small: pay as many bills as possible on time, keep credit usage to a minimum, and monitor your score regularly to see how you’re doing. These simple steps will do you wonders down the road!

9. Cut Back on Unnecessary Expenses (So Your Savings Finally Grow!)

Unnecessary spending is one of the biggest barriers to financial success. If you really want to grow your savings this year, start cutting back on wants and nice-to-haves. Trust me, I know it’s tough. As a girl who loves all things food, home decor, gardening, fashion and beauty, I can always find a reason (or 10) to spend money! This one really takes time and discipline but by starting slow and cutting out a few expenses at a time, eventually it will become second nature.

Here’s how to start:

• Review subscription services—are there free alternatives or plans? Are there any you can cancel because you don’t really use them?
• Swap daily coffee runs for making coffee at home.
• Cut back on weekly takeout—try meal prepping instead.
• Pause impulse purchases—give yourself 24-48 hours before buying (This one works like a charm! Often times, you’ll forget you even wanted it.)

These small shifts add up—and your savings account will thank you.

10. Find New Income Sources (Turn That Hobby Into a Side Hustle!)

Saving money is great, but making more? Even better! There are so many ways to boost your income just by doing what you already do. Some of the best tips I’m about to share come straight from Ramit Sethi’s bestselling book, I Will Teach You To Be Rich: No guilt. No Excuses. No BS. Trust me, these strategies make a difference!

• Recycle & Sell: If you drink from aluminum cans, recycle them for cash (rates vary by state). Or, sell old clothes, furniture, and other items online instead of donating them. I’ve made hundreds of dollars off Facebook Marketplace by doing this. It’s quick, easy, and free to do!
• Negotiate a Raise: If your performance review is coming up, ask for a raise or discuss a personal development plan that will enable you to get a promotion in the near future. I know this can feel uncomfortable, but if 30 minutes of discomfort led to an extra $200 a month, suddenly it sounds a lot more worth it—right?
• Maximize Your Savings: Check if your bank offers a higher-interest savings account to earn more on the money you already have. All it costs is one quick trip to the bank.
• Upgrade Your Credit Card for Better Rewards: Already using a credit card? Consider upgrading to one with higher rewards so you can earn more cash back or points per dollar spent. Many premium cards offer bonus points for categories like groceries, dining, and travel, which can be redeemed for statement credits, direct deposits, or other perks. If you’re spending anyway, you might as well make your money work for you!
  • Psst! Don’t put credit cards with annual fees off the table…I used to avoid credit cards with annual fees, but honestly, my current one ($90/year) pays for itself within the first two months. After that, I make hundreds in cash back thanks to the high points-per-dollar system!
• Turn Your Hobby Into a Side Hustle: Have a hobby you love? Why wait to turn it into extra income? I used to think blogging was just a fun hobby, but it turned out to be a great way to earn extra money—and I started with zero experience. The truth is, you don’t need to be an expert, have years of experience, or wait for the “perfect time.” Anything can be learned, especially with the right resources.
  • Sophia Lee’s Perfecting Blogging Course Bundle was a game-changer for me. It walks you through everything step by step, from setting up your blog, to getting on Pinterest, and making real money from it. Whether you’re a complete beginner or someone looking to refine your strategy, her course is designed to help you succeed.
  • The best part? I was able to start making money within my first year. If I can do it, so can you. If you’re even a little curious, take the first step—your future side hustle (and bank account) will thank you!

11. Start Investing Your Money (Make Your Money Work For You!)

I know the idea of investing can feel overwhelming, but it doesn’t have to be. You don’t need to be a stock market expert or dive into cryptocurrency to start. Investing can be as simple as setting up a mutual fund, contributing to a 401(k), investing in index funds, or opening a high-yield savings account. If you’re new to investing, start small and choose an option that feels manageable. The key is to just get started. The sooner you invest, the more time your money has to grow—and that’s money working for you instead of just sitting in your wallet or your bank account!

12. Invest in Personal Finance Education (There’s No Downside To This!)

One of the simplest and smartest “money moves” you can make is to get educated! I’m not saying go get a college degree and become a financial accountant. This can be as simple as following personal finance experts on YouTube, TikTok, or Instagram. When you’re ready to take it a step further, consider listening to podcasts, taking an online course, or reading a finance book. And guess what? You’re already making progress by reading this blog—so give yourself some credit! The more you learn, the better equipped you’ll be to save smarter, invest wisely, and make financial decisions with confidence.

For my friends who like to read, I love love love the book The Richest Man in Babylon. It’s a quick, easy read with 10 fables that teach important life lessons on money. This is a great way to get motivated and learn the power of smart finances. It’s also a great book to read to your young ones at home who are just learning the concept of money!

Another read I highly recommend is The Psychology of Money, which is all about money mindset. Adopting a money mindset is key for financial success and is actually a topic we’ll be covering later in this blog series.

13. Get Financial Help (Because We Could All Use A Little Guidance!)

Last but certainly not least, seeking professional guidance can save you so much time, stress and even money. Here are some things to think about:

• Taxes stressing you out? A CPA (certified public accountant) can help find deductions and ensure you’re not overpaying. Even if you only hire one once, you’ll learn enough to potentially handle your taxes yourself next year.
• Want to start investing but don’t know where to begin? A financial advisor or stockbroker can help you set up an index fund or other investment plan tailored to your goals.
• Thinking about a 401(k) but feeling lost? Your employer’s HR department can walk you through the different plan options and employer match benefits.

Don’t be afraid to ask questions and take advantage of the resources available to you! Investing in yourself, your education, and your personal finances will only benefit you in the long run.

Conclusion

Now that you have 13 actionable personal finance goals to choose from, the next step is to prioritize! I recommend selecting a few short-term goals (to tackle over the next 3-6 months) and a few long-term goals (to work toward over the next year or more). Aim for 3-5 total so you stay focused without feeling overwhelmed. The key to success is making your goals realistic for your financial situation so you stay motivated and on track. Small, consistent progress leads to big wins over time—so start where you can and keep building from there. You’ve got this!

Next up in the blog series

In Part 5, I’m walking you through exactly how I used the 10-step money saving plan to pay off $12,000 debt in only 6 months. Click here to get inspired now and officially make the transition from debt to savings.

Share Your Thoughts

Which of these personal finance goals are you most excited to tackle this year? Let us know down in the comments!

The post 13 Realistic Personal Finance Goals to Crush Your Savings appeared first on The Allie Edition.

This site contains affiliate links, view the disclaimer for more information.

Welcome to part 3 of 10 in my personal finance blog series, where we dive into how a money saving plan can be your key to successfully transitioning from debt to savings. If you’re just joining us, be sure to check out the first post for a deeper dive into why a money saving plan is so crucial. It’ll lay the foundation for everything we’re discussing moving forward.

If you’re ready to take the leap from debt to savings, or have been struggling with your current money saving plan, look no further. In this post, we’re going to break down the 10 key steps that you can take to build a solid money saving plan and finally create the financial future you envision for yourself.

Psst! The strategy I’m getting ready to share is exactly what helped me pay off my $12,000 loan in just 6 months and stay debt-free ever since. The best part? I’ve already done the hard work of perfecting this approach—so all you have to do is relax and absorb it. I’m excited to see how this can help you, too, get on the debt-free train. You’ve got this!

10 Powerful Steps to Transition from Debt to Savings

Making the leap from debt to savings is no small feat. It takes a lot of hard work and discipline to effectively stay debt-free and build up a healthy savings. But beyond that, it’s extremely important to have a strategy in place for how you plan to pay off your debt and build your savings. This is what we call a money saving plan. Now, money saving challenges are a great way to ease into building your savings. However, what’s really going to set you up for success and help you hit your financial goals is having a solid, end-to-end money saving plan. One that strategically takes into account your entire financial situation, both where you are now and where you want to be down the line.

If this is your first time hearing of a money saving plan, I highly recommend starting out reading why a money saving plan is so important, followed by understanding what exactly a money saving plan is. If you already have a money saving plan but are looking for ways to strengthen it, you’ve come to the right place. Keep reading to learn step-by-step how you can build a solid money saving plan for yourself.

Step 1: Assess Your Current Financial Situation

Before you start making big changes, it’s important to assess your current financial situation and figure out where you stand. Take a look at how much you’re bringing in each month, your monthly expenses, any outstanding debts, and any savings you currently have. I know this can be a little daunting, but this step is so so important—it’ll give you the foundation you need to create a realistic budget and start setting some financial goals (two key steps that we’re getting ready to cover below). Once you’ve assessed your situation, you’re ready for step 2!

Step 2: Identify Areas for Improvement

After reviewing your finances, identify exactly what areas of your finances you can and want to improve. This is important to know as we move into the next few steps. Think about…

• Do you want to cut back on unnecessary spending, like online shopping, dining out, impulse purchases, or monthly subscriptions?
• Do you want to save more toward your emergency fund?
• Do you want to save more toward your retirement?
• Do you want to put more money toward your debt payments?
• Do you want to invest and make your money work for you?

Once you’ve identified at least one area for improving your finances, proceed with the next step.

Step 3: Set Savings Goals and Prioritize

Alright, it’s goal setting time. My friends, do not skip this step! This is where the magic happens. Setting clear savings goals and prioritizing what you want to save for is a crucial part of developing your money saving plan. Having goals for yourself gives you something to track progress toward and allows you to see just how far you’ve come 3-6 months down the road as you’re actively saving. The best way to set clear goals is by following the SMART goals strategy: Specific, Measurable, Achievable, Relevant, and Time-bound. Start by identifying 3-5 short term goals and 2-3 long term goals.

For those who are on the verge of paying off their debt or are debt-free, remember that it is still just as important to set financial goals and save money as if you were still in debt. Consider new savings goals like building a 6-month emergency fund or healthy retirement savings. Investing in your future self is very important so you can live comfortably later on, just as you may be living now. Think about the lifestyle you want to have when you are older and put a plan in place now that will allow you to get there.

Step 4: Create a Realistic Budget

Budgeting is all about tracking your income against your expenses, no matter how small, and making sure you leave enough wiggle room for the lifestyle you want—all while avoiding overspending. Ask yourself: Where is my money going? Are my spending habits helping me stick to my budget? And do they align with my financial goals?

Keep in mind that everyone’s budget is going to be entirely unique to their financial situation and lifestyle. There is no “one-size-fits-all” approach. So, instead of stressing over trying to make your budget look like someone else’s—whether it’s your best friend’s or that picture-perfect one you saw on social media—focus on what works best for you. Moreover, make sure it is sustainable and appropriate for your financial situation, that way you don’t get overwhelmed nor tempted to give up within the first couple months.

When you’re getting your budget set up, use these smart tips for organizing your personal budget, including what budget categories to consider per your income and expenses. Once you’ve got that all squared away, a common rule of thumb for budgeting is to divvy up and allocate a percentage of your income among 3 categories: Needs 50%, Wants 30% and Savings 20%. If necessary, modify each % according to your financial situation. For example, if your needs account for 60% of your income, reduce your wants to 20%. In this case, your budget would look like Needs 60%, Wants 20%, Savings 20%. Again, there is no one-size-fits-all.

Step 7: Automate Savings and Payments

I don’t know about you, but I like anything that makes my life easier–especially my finances. To do just that, set up automatic payments toward your savings and debt. Treat your savings just like your bills–but instead of paying someone else, you’re paying YOU (your future self). This way, when your paycheck comes in, a portion automatically gets sent to your savings account (or to pay off debt). It’s out of sight, out of mind, and you won’t have to stress about it. Eventually, you won’t even notice it, and you’ll be building savings without even thinking about it! Something as simple as automating your finances can not only take a huge weight off your chest, but it will ultimately help you stay on track and consistent with your financial goals.

Step 8: Organize Your Finances

Organizing your finances from the start is one of the easiest ways to simplify your finances. If you’ve been following the steps in this post, you’re already 90% of the way there! But to really make all your work worthwhile, you want to make sure you’re staying organized. Leverage the following tools to maintain control over your finances and stay on track for years to come:

• Budgeting planners are an effective tool for managing your finances. A handheld budgeting planner like this one helps you document your goals, track daily expenses, and map out your finance strategy (like how you’ll leverage this money saving plan). It even comes with cute stickers which, if you ask me, stickers make anything WAY more fun.
• File organizers are a great method for keeping things like medical bills, receipts, and other important tax documents tidy and easy to access. To maximize desk space, opt for a multi-functional file organizer like this one. Or, if you’re thinking “Allie, I don’t want another thing on my desk,” these wall file organizers do the same job and are super easy to hang up.
• Personal finance apps make managing finances on-the-go super easy. Most banks and credit card providers have mobile apps, but you can also use apps like You Need a Budget (YNAB), GoodBudget, Monarch Money, and Every Dollar. Some, like Every Dollar, even let you connect your bank account for seamless tracking.

Step 9: Track Your Progress

This step is all about keeping an eye on your financial progress to ensure you’re staying on track with the goals we set in Step 3. It also works hand-in-hand with Step 10, which we’ll dive into next. By regularly monitoring your progress, you’ll start to notice your own personal financial trends, like the categories where you save or spend the most. This insight helps you determine whether you’re making great strides toward your goals or if you need to make adjustments to get back on track.

Tracking your progress is about more than just reaching a goal though. It’s about recognizing how far you’ve come, celebrating even the small wins, and staying motivated as you move toward your next financial milestone. It’s easy to feel like you’re not doing enough or that progress is slow. But tracking your progress gives you a tangible way to visualize your efforts and serves as the perfect reminder that you are making great strides and working hard toward your goals. Remember, you’ve got this!

Step 10: Reassess Your Budget Regularly

We made it to the last step guys, yay! For this last step, I want to emphasize the need for reassessing your budget regularly. This is your opportunity to ensure that overtime, everything you’ve worked so hard to plan out is continuing to push you toward the financial future that you envision for yourself. A common misconception when it comes to budgeting is thinking that once you establish a budget, you need to be locked into that budget. However, your financial situation and priorities in life are naturally going to evolve over time. So it only makes sense that your budget evolves with it.

Think about it. If you’re working toward a down payment on a house, you might want to dedicate more money to your savings. Or maybe you’ve paid off a big chunk of debt and now you can start investing. Whatever the case, reassess and make sure your plan is evolving with your goals. The more you reassess, the more control you have over your finances and the more prepared you are to handle any financial obstacles that come your way.

Phew! Let’s recap.

While trying to get out of debt can feel overwhelming or even impossible at times, committing to a solid money saving plan can be all it takes to get on the debt-free train. I encourage you to start with at least one of these 10 key steps, and you’ll soon see just how powerful a focused plan can be. If you need more clarity on any of the steps, feel free to drop a comment below!

Next up in the blog series

Next up is part 4, where you’ll learn how to set realistic, achievable financial goals that’ll keep you motivated—because let’s be real, without motivation, the results you’re after can be hard to achieve.

Tell Us Your Story!

What debt challenges do you face and how have these tips helped you? I’d love to hear your experience, drop a comment below!

The post From Debt to Savings: Step-by-Step Guide to Start Your Money Saving Plan appeared first on The Allie Edition.

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Welcome to part 2 of 10 in my personal finance blog series, where we dive into how a money saving plan can be your key to successfully transitioning from debt to savings. If you’re just joining us, be sure to check out the first post for a deeper dive into why a money saving plan is so crucial. It’ll lay the foundation for everything we’re discussing moving forward.

Alright, if you’re here, you’re probably thinking, “I know I need a money saving plan, but where do I even start?” Trust me, I’ve been there. I’m someone who loves having a plan for everything, yet I was still overwhelmed when I first started. What did my “plan” even need to look like? It took some trial and error, but let me tell you: once I had a solid plan in place, everything started to feel a lot more manageable. Honestly, I don’t think I could’ve paid off my $12,000 debt in just 6 months without it.

In this post, we’ll break down exactly what a money saving plan is and, more importantly, how to get started with 9 smart and simple money saving challenge ideas.

It’s not as complicated as it sounds—I promise. Let’s dive in!

9 Smart Money Saving Challenge Ideas

Let me start by saying, there are so many money saving challenge ideas out there—it can feel overwhelming, right? I could name off a million of them, but here’s the thing: without understanding why you’re doing it, it’s easy to lose motivation and quit. As with anything in life—whether it’s running a marathon or saving for a vacation, if you don’t have a clear “why” to keep you moving, it’s hard to stick with it.

So before we dive into these 9 money saving challenges, take a moment to reflect: Why are you here? What’s pushing you to start saving? In part 1 of this blog series, we talked about why having a money saving plan is so important, and now it’s time to dig into your personal why. What is it about saving money that’s going to keep you excited and motivated?

For me, beyond just the basic need to pay bills, a solid money saving plan meant I could still enjoy the little things I love—like sushi dates and the occasional Starbucks run—without feeling guilty or stressing over my finances. (Because yes, I love my sushi, and no, I’m not giving it up!) Think about what those little things are for you—what makes you smile, and how can saving money give you the freedom to enjoy them guilt-free?

Alright, ready to jump back in? Let’s do it.

What is a money saving plan?

A money saving plan is essentially your blueprint for staying financially afloat, even when life throws you curveballs like a flat tire or a visit to urgent care. Having a solid money saving plan means having one that actually makes sense for you. It has to fit with your lifestyle and be realistic–otherwise you’ll likely feel tempted to give up after only your first month. 

Creating your money saving plan doesn’t have to be this big, complex thing. Let’s keep it simple. If you know you can only save $100 a month, don’t beat yourself up and go trying to save $1,000. Maybe by the next month you’ll be able to swing $200, $500, or more. You can work up toward that $1,000 a month if that’s your ideal monthly saving amount. The beauty of a money saving plan is that it’s totally unique to you and your situation. And guess what? It doesn’t have to look the same for the next three years. Honestly, it doesn’t even have to look the same in the next three months. We’ll dive more into this in part 3 of the blog series: 10 steps to transitioning from debt to savings. But for now, we’ll stick to the whole reason you’re here—how to start saving money!

9 Money Saving Challenge Ideas to Kickstart Your Journey

drumroll The moment you’ve been waiting for! Now that we’ve covered what a money saving plan is and why it’s a game-changer… Here are 9 smart money saving challenge ideas you can try—no major sacrifices required, just smart ways to start saving! I’ve even ordered them based on difficulty to help you decide where it’s best to start.

• Easy = Great for beginners or anyone looking for simple ways to start saving without a lot of effort. Perfect for stacking on top of other challenges as you build momentum.
• Medium = Requires a bit more effort—ideal for those who are starting to build their savings but might not have a ton of room to save just yet.
• Hard = This one’s for those ready to take their savings to the next level. It’s a bit more challenging but great for making bigger strides in your savings.

Psst: Challenges 1, 6 and 8 were key toward my success. They helped me pay off $12,000 in debt in just 6 months and remain debt-free ever since. Trust me, these really work!

Easy

Medium

4. 52-Week Dollar Saving Challenge

The idea is simple. On Week 1, save $1. On Week 2, save $2, and so on. Each week, you will save a little more than the last week. By week 52, you should be saving $52. When you add up your total savings from Week 1 to Week 52, you will have saved up $1,378. You can even reverse this challenge and start by saving $52, then gradually decrease over the year. This could easily cover a fun outing or weekend getaway, depending on your family size. 

You can use this 52-week money saving binder to keep your savings organized. It also comes with 4 saving challenge trackers to choose from. Use the DIY tracker to save $1,378 this year like we talked about above, or try out one of their more advanced trackers to save up to $10,000!

5. Weekly Skip & Save Challenge

Pick one thing you buy regularly, like your morning coffee, gum, or even a little online splurge. Each week, put that money into your savings instead. Let’s say you spend about $7 a week on coffee. If every week you skipped your coffee run and saved the $7 instead, by the end of the year that’s $364 saved. That could help cover a surprise expense like a car repair or unexpected medical bill!

6. No-Spend Days Challenge

It’s time to go grab your calendar! Choose a day—or a few days—each week where you’re committing to spending absolutely nothing. Most people will tell you to pick the days you always spend on and make those your no-spend days. But honestly, I think that’s setting yourself up for frustration. Instead, focus on reducing the total number of days you spend. For example, if weekends are your usual time to splurge, pick just one day to go without spending. It’s a simple yet effective way to start building savings without feeling like you’re depriving yourself.

If you don’t already have a calendar or just want something to separate to track your savings with, here’s a cheap no spend challenge tracker you can use each month.

When I first did this, I realized that cutting back to spending only 4-8 times a month was a total win (and yes, I still got to enjoy my Wednesday Sushi nights and Saturday shopping sprees—yay!). So, choose a couple of days each month to hold off on spending, and stick to them. The goal here isn’t to eliminate spending entirely—it’s just about reducing the number of days you’re spending money. This small change can make a big difference for your finances.

Hard

7. 12-Month Hundred Dollar Saving Challenge

This is similar to the 52-week money saving challenge, but instead we’re going to look at this in monthly spurts. Each month, increase your savings by $100. Start with $100 in Month 1, $200 in Month 2, and continue until you’re saving $1,200 in Month 12. By the end of the year, you’ll have saved $7,800. If the holidays make saving tough, try reversing the challenge and save larger amounts early in the year. This challenge is perfect for those who want to boost their savings quickly.

8. Automated Savings Challenge

Choose a fixed amount to save every month and set up automated payments from your paycheck directly to your savings account. You can even set up minimal transfers from your savings to your checking account to ensure that you are not transferring money out of your savings whenever you want. (for example, 6 maximum transfers per month allowed before receiving a penalty from the bank). This increased level of commitment and discipline can be tough, but ultimately sets you up for success in achieving your financial goals. If you commit to $200 a month, this could save you $2,400 a year! For the more aggressive savers, saving $2,000 a month could save you $24,000 a year!

9. Randomized Savings Challenge

Add a little excitement to your savings! Write down 12 varying amounts of money (i.e. $50, $100, $200, etc.) on pieces of paper, fold them up, and place them in a jar. Each month, randomly draw one note and save that amount. This keeps things flexible and makes saving feel a little like a fun surprise while still being committed to the goal.

Now, to make this challenging? Set a minimum amount for each month that you must save so by the end of the year, you’re hitting a financial goal (i.e. to achieve $5,000, you may need to save between $400-800 per month). Important reminder to set yourself up for success by sticking to dollar values that are doable given your financial state.

I highly recommend using a budget binder to keep your savings organized and stay on track financially throughout the year. This binder is perfect because it includes cash envelopes, premade category labels, and monthly budgeting sheets. Even if you prefer saving digitally, you can still use the cash envelopes by simply noting the amount saved on a small piece of paper and placing it inside the envelope.

Conclusion

Having a money saving plan is the key to transforming your financial future—it helps you pay off debt and still enjoy the things that make life fun, without constantly stressing over money. Now that you’ve got 9 money saving challenge ideas to get started, it’s time to kick things up a notch.

Next up in the blog series

Head over to part 3 of this personal finance blog series where we’ll walk through a step-by-step guide for building a solid money saving plan and officially making the jump from debt to savings!

Tell Us Your Money Saving Tips!

Got any unique or fun ways you save money? Share your tips and challenges in the comments below—we’d love to hear how you’re making savings a part of your routine!

The post 9 Smart Money Saving Challenge Ideas to Save and Pay Off Debt appeared first on The Allie Edition.

Growing up, my mom always emphasized staying out of debt because she knew firsthand the struggles it can bring. As hard as I tried, I eventually found myself in a situation where taking on debt seemed unavoidable. My car kept repeatedly breaking down and, living far away from home, I needed a more reliable form of transportation if I wanted to get to work every day and be able to pay my rent. This led me to taking out a $12,000 loan on a car (my very first big girl purchase). It wasn’t ideal, but it was necessary.

From there, I was determined to pay off my loan as quickly as possible so I could get out of debt. What followed was a journey to pay off that loan in as little as six months. What motivated me to pay it off so quickly is that once you’re debt-free, the money in your account is finally yours to save, invest, or use as you see fit. This meant I could travel abroad or go on shopping sprees at my own leisure without the burden of debt hanging over me.

You might be wondering, “But how did you possibly pay off $12,000 of debt in only 6 months?” I’ll gladly tell you the secret. It’s all thanks to having a solid money saving plan in place.

If you’re part of the 80-something percent of individuals in the U.S. struggling with debt, don’t worry. I’ve got you covered! I’ve created a blog series to help you, too, go from debt to savings, and today we’re starting at the very beginning.

After reading this post, you will understand the importance of a money saving plan and why it’s a good idea to tackle your debt in the process.

The Importance of a Money Saving Plan

First off, big kudos to you for taking the time today to invest in yourself and your financial future! You’re already on the path to success, and that’s something to celebrate. Making the leap from debt to savings can definitely feel like a big challenge, but trust me—if you’ve got the right strategies in place (like a solid saving plan), you’ve got this. Financial growth and freedom are totally within reach, and I’m excited to help you get there!

You’re getting ready to dive into the start of an incredible blog series that’ll walk you through everything you need to know about creating a money saving plan. We’ll talk through fun money saving challenge ideas to kickstart your journey, break down a step-by-step guide to building your saving plan, and I’ll even share how I used this same strategy to pay off $12,000 in debt in just 6 months.

To kick us off, I want to remind you why having a solid money saving plan is such a game-changer. We’re going to uncover the weight that debt can carry, why tackling it should be your number one priority, and how to find the right balance between saving and paying it down. Ready to invest in your financial future? Let’s get rolling!

The Emotional Burden of Debt

Having debt can take a serious emotional and financial toll. Without a solid money saving plan to pay it off, things can very easily spiral out of control. Or as we commonly hear in the debt world, they can “snowball.” Maybe you start with a credit card for a vacation or a new appliance, thinking you’ll pay it off in a few months. But all of a sudden, “life happens.” You get a flat tire, you (or your child) needs to go to urgent care, or–if you have my luck– your dishwasher just stopped working for the third time.

It’s easy to underestimate how quickly debt can snowball when unexpected life events keep piling up. But believe me, these surprises add up, and suddenly you’ll be left with more debt than you intended wondering, How in the world will I pay this off?  The best thing you can do to reduce the emotional burden of debt is to tackle it as soon as possible.

Tackling Your Debt Early On To Achieve Financial Freedom

If you didn’t know already, the longer you carry debt, the more compounding interest you get–making it even harder to get ahead. What feels like a small amount of debt today can grow exponentially over time, especially if interest starts stacking up. This is one of the main reasons so many people in the U.S. find themselves stuck in a debt rut for several years to come. With that, you can probably start to imagine now how crucial it is to address debt early on and consider paying off debt a priority.

Now, I want to highlight that debt isn’t inherently bad—when used wisely, it can actually help you grow (like investing in real estate or an education). However, the goal should always be to manage it carefully and pay it off as quickly as possible to prevent the interest from working against you. 

Balancing Savings with Debt Payments

Now, we know that getting rid of debt is a big step toward financial freedom, but that doesn’t mean you have to put saving on the back burner. You can and should do both. While you’re paying off debt, make sure you’re also putting money aside for unexpected expenses, like that flat tire we talked about or your urgent care bill. This will act as your emergency fund, or financial safety net, and ensure you don’t end up in more debt.

When you’re building your money plan, the key is finding that balance between paying and saving. You want to pay off your debt in a reasonable amount of time, but you also want to build toward your future. Take a steady approach so you can progress on both fronts without feeling like you’re sacrificing one or the other.

Conclusion

No matter how you look at debt, one thing remains true: tackling debt is crucial for financial freedom and it should be one of the first priorities when building a money saving plan. A solid plan that balances paying off debt and saving money is what will empower you to take control of your financial future. It’s what allowed me to pay off $12,000 in debt within six months and remain debt-free to this day.

Next up in the blog series

Head over to part 2 in this personal finance blog series where we will uncover exactly what a money saving plan is, followed by 9 smart money saving challenges to get you started.

Join the conversation!

Drop a comment below and let us know your experience tackling debt and how a money saving plan helped you!

The post Why a Money Saving Plan is Essential for Your Financial Future appeared first on The Allie Edition.