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Start Saving Money Today: How I Saved 700 Dollars In 1 Month

Updated on July 5, 2010
Set your goals small, complete them. Have discipline. Plan to the end.
Set your goals small, complete them. Have discipline. Plan to the end.

Everyone wants to have a cool $100 extra at the end of the month. How about $500? How about $700? Early September of this year(2009), I decided I was going to pay back the money I owed a personal friend. I was in a hard time financially and I had to borrow some money. I borrowed $600 from my friend a few years ago. We lost touch but I still remembered my debt. Being in debt is crippling. It lingers in the back of your mind. So I decided to take control of the situation I was in. I wasn't making too much money in my job but I was making enough to pay my bills, feed me, and buy some nice stuff for me from time to time. I noticed that I was spending money I could be saving. I would eat out every other night where I could stay home. I decided to truly discipline myself. I set a personal goal. I wanted to pay back my friend by Halloween. It was a good goal. It was long enough so that I could prepare and I eventually met it a month in advance!

Paypal Was the Answer!

Can you believe that? Yes, I used Paypal as the middleman to paying off my debt. There were several reasons why I decided to use them. For starters, when I asked my friend for help, he immediately sent me money via Paypal. After I lost touch with him, I thought I would pay him back the same way. Paypal takes a small amount for the transaction fee. This didn't bother me too much because I was planning on paying my friend $700. $100 more than what I owe just because I took so long to pay him back. It was a show of appreciation. I Started by sending $149 to my Paypal and I quickly realized that I didn't need that much money on me. When I have money on me or in my bank account, I was more eager to buy stuff I don't really need. I only used Paypal to buy stuff on Ebay so I made it my goal to transfer more money into my Paypal while avoiding Ebay altogether. I have a rule when it comes to getting my check. I always spend a part of my weekly earnings on myself. Even if it is something little. I have this rule for a few reasons. One, when all you do with you money is pay bills, rent, or save, you will be burned out and not have motivation to continue working hard the next week. So I make it a rule to treat myself. It's a mental motivation.

After my initial $149 "deposit" into my Paypal, my next week, I decided to add more. I transferred $400 into my account! The previous week was very busy at work and I put in many hours. I was very determined to pay back my friend. It was on my mind. Every time I purchased something, I always reminded myself, "Set, you're in debt. Get out of debt!" I would talk to myself. I would constantly remind myself even if I purchased some coffee. Anything. This form of "mental nagging" help me out tremendously. My next deposit was not as big. I deposited $300. I was still very aware of my responsibilities. I had rent coming up and utility bills. I was only able to transfer $300 into my account but it was enough for me to pay back my friend.

What a Coincidence!

Right when I had enough money in my Paypal account, I ran into my friend while biking to work! Wow! I asked him to verify his Paypal email. We chatted for a bit and took off. I was very late for work and I apologized for that! I sent him money on the 2nd of October but Paypal takes a few days to go through. He receive his money on the 8th. I was debt free! It felt good. Wow, what a coincidence that I ran into him. I haven't seen him in years. Anyway I learned a few valuable lesson from this. If you are in debt, get out. Find a way to get out. Take control and plan. Plan all the way to the end. Don't just save and not have the goal in mind. Another thing I learned is I can't spend money I don't have. When I walk out of my house, I take with me my wallet. In my wallet are some cash and my bank credit card. If I don't have money in my bank account, I can't spend it. Even if I am tempted to spend money on impulse, it would not be possible. The money would be in my Paypal account. You can't spend money you don't have access to.

It Doesn't End Here

After I paid off my debt and feeling like the man, I looked at the calender and realized, "Christmas is coming up." Realizing that I could save a ton of money if I put my mind to it, I decided to continue to save money this way and get my Christmas shopping done with. I have some time to go, but I like the feeling of getting things done early. I'm going to work to save at least $800 for Christmas. I hope to accomplish this goal a month in advance. I am the man of the household and I like the responsibility. I'm going to work hard to give all my people the things they want for the holidays. You should too! I will probably order the gifts off of Ebay.

Saving $700 in 1 month was not hard for me. It was not easy either. I realized that I have the discipline. I don't need too many luxuries. This was a big factor that helped me save money. If I was not disciplined, I don't think I could have done it. This year should be happy holidays despite the recession. All I have to do is work hard, save big, and stay positive. Thanks for reading my story and good luck to you!

Have you ever saved money under the matress? How about now?

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    • Set's All Set profile image

      Set's All Set 8 years ago from New England

      Thanks Eileen. I bet it will work for you too! :)

    • Eileen Hughes profile image

      Eileen Hughes 8 years ago from Northam Western Australia

      great hub and yes sounds like it worked for you. thanks

    • Set's All Set profile image

      Set's All Set 8 years ago from New England

      Thanks for the comments all.

      @lady_E - I currently have $289 in my paypal and i expect to put another 200 this weekend! I should be on track for the x-mas shopping season.

      @wife Who Saves - It's a great feeling not to be in debt. Freedom is the word I was looking for. :)

    • Lady_E profile image

      Elena 8 years ago from London, UK

      This is a very lovely, practical Hub. I have actually bookmarked it. I have paypal and will start using it the way you have suggested. Will also share with people. It would be such a great feeling to be out of debt.

      Nice one. Thumbs up. :)

    • profile image

      Wife Who Saves 8 years ago

      It is a good feeling to not be in debt. This is a wonderful story. Thank you for sharing it.