Posted on Tuesday, 15th December 2009 by admin
There have been a lot of headlines over the past few years about how the savings rate is reaching levels that have not been seen in a very long time. It’s true that many people are putting a greater emphasis on saving because of the growing need for security in case of a job loss or another downturn in the economy. However, a lot of people read those news stories and wonder how anyone is saving money in an economic environment like this.
Not everyone is in a position to save, but there are some ways to start saving now that don’t require a major sacrifice or lifestyle change to achieve. To start saving, all you really need is the desire to save. It may not be big amounts of money at first, but over time it can add up to a meaningful savings account.
Automate: If your goal is to set aside $20 from each paycheck in a savings account, your chances of doing it effectively increase if you make that transfer happen automatically without having to initiate it yourself. Once the money is in your checking account or your wallet, it’s much more difficult to part with it. Talk to your HR department about setting up a direct deposit to send a portion of your paycheck to an interest-bearing savings account. If you don’t have a direct deposit option, try at least to set up an automatic transfer from your checking account to your savings account each month.
Investigate Bank Programs: One of the things that many banks do really well is help their clients save money. Banks love the idea of their customers growing their deposit bases and over the past few years they’ve developed some innovative new ways to save. Many banks, for example, round up every debit card purchase to the next whole dollar and deposit the “change” from the transaction into a savings account. Suddenly a $5.50 debit becomes a $6.00 debit with fifty cents going to savings. It’s a small step but it can add up quickly.
Build Momentum: With saving, getting started is the hardest part. Once you’re accustomed to setting aside a set amount from each paycheck, slowly see if you can periodically increase that amount. If you can live without $20.00 from each paycheck, you can probably survive even if you set aside a little more. Avoid taking withdrawals from your savings account for any reason, because once you clean out that account it’s much more difficult to start saving again. Instead, set goals and allow yourself a small reward when you reach those goals.
Get Matched: Saving isn’t always easy, but it’s easier when you’re employer is willing to save a dollar in your name for every dollar you save on your own. Saving through retirement plans like 401K’s often provide access to an employer match that can double your savings effort, making that sacrifice a little easier to swallow. You’ll also sleep better at night knowing that you’re putting something away for your future.
Similar Posts:
- Common Mistakes When Using A Credit Card
- PNC Bank $100 Bonus With Virtual Wallet
- Citizens Bank Offers $100 Holiday Gift With New Checking Account
- Post Office banking for the vulnerable
- Easy Tips on Personal Finance – Start Here!
Tags: Saving, Saving Today
Posted in Financing FAQ | Comments (0)