How to Save Even When You Think You Can’t

There’s one piece of personal finance advice that I use over and over again. It’s simple, it works for almost everyone, and it has nothing to do with buying or not-buying lattes.

Make saving a habit.

For years I’ve been quoting Stephanie Kibler, a personal finance blogger at Poorer Than You. (The tagline is “Money: It’s not just for rich people.”) In her early 20s, Stephanie knew she should be saving for retirement. But on a slim salary, she just couldn’t do it, so she decided to save just $5 a month.

Family and friends told her she was wasting her time, but Stephanie disagreed. She found that setting aside $5 a month taught her something valuable: She could be a person who saved for retirement, even at a minuscule level. Once she got used to saving for retirement, Stephanie increased that $5 to more substantial amounts.

When it comes to saving, even the tiniest bit is meaningful.

My caveats are: No beating yourself up. Don’t feel shame over not having more or not saving more. You do what you can do, and feel proud that you’re developing  a great financial habit.

Our reporter Mary Ellen Cagnassola spoke with Tori Dunlap, who is a cheerleader for new investors — especially women — about the realities of saving when you’re broke or just getting started. (Or both.)

— Jill Cornfield, deputy editor

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