The Importance of Saving Small Amounts

by Sean Bryant on October 15, 2012

My parents taught me many helpful lessons over the years. One of the most important ones was the benefit to saving. It’s because of this that I have been able to live a life of little debt. Saving money is something a lot of people struggle with, due to the fact it’s much more enjoyable to see your money buy things than to just watch the balance of your bank account go up.

Growing up I always used to receive an allowance from my parents. Occasionally, I would spend some of it on baseball cards or something else that I enjoyed. Most of the time I would just save it. Before I had a bank account, I would keep my money in a jar in my closet. I can remember the feeling I had every time I saw the wad of cash grow a little bigger week by week. It gave me that sense of comfort that if there was something I really wanted I would have plenty of money to afford it.

That large wad of cash in my closet didn’t just come overnight. It came from saving a little bit each week over a period of time. It’s that principle that we need to use today when saving for something. Most people are intimidated by the big picture of saving.

If you are planning on saving for a vacation, forget that it might cost your family $1,000. Instead, think about the idea that you could take $20 each Friday and put it in a separate account, you will have saved up $1,000 for the vacation in just one year.

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Sean Bryant

Sean Bryant created OneSmartDollar.com in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and he wife are avid world travelers. He enjoys spending time with his daughter Colette and dog Charlie.
  • Nice, I saw that one other blog I read is doing this giveaway. Saving small amounts over time is a relatively easy way to build up a big bank account.

  • I saw the giveaway too and on both sites it say “502 Bad Gateway”.
    Small amounts do add up and it is just a question of time and patience to reap the rewards!

  • Glen @ Monster Piggy Bank

    Small amounts can make a huge difference to your bottom line. I remember when my wife and I were saving for our house, the easiest way we found to reduce our spending was to cut out the little things.

  • holly

    It all adds up- you are so right! Even $20 is significant if you can save it week after week after week!

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  • It does all add up. I love to take vacations and have a fund specifically for it. It really isn’t out of reach for anyone if they are will to save a small amount each week (or month)!

  • I never received an allowance but I did get birthday and christmas money. It was never a lot of money, but I would hold onto that money for as long as it took to be a big chunk. I literally survived off of birthday and christmas money for years when I was a kid and teenager. i don’t know how I did it looking back.

  • Jessie C.

    Shop on sale and use coupons help to save small amounts of money

  • Elena

    I use coupons and shop online using cash back sites

  • Kim

    Transfer something each paycheck to an account not connected with your main one. You don’t see if often and it’s surprising how fast it builds up.

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