Saving Money Faster
http://www.money-tips.com.au/articles/167/1/Saving-Money-Faster/Page1.html
Richard Greenwood
By Richard Greenwood
Published on 08/7/2008
Savings accounts aren't going to make you rich but they do form an important part of an investment portfolio by allowing the money you need to access quickly to provide an attractive and return. Find out how to make your savings grow faster.
How to save money faster
Saving money faster is possible! It’s not glamorous, but it’s not as difficult as some would like you to believe. There are a few simple tricks you can do to build the balance in your account faster than you ever thought possible—and they won’t involve eating macaroni and cheese four nights a week, either.
First, find the right savings account. High interest savings accounts are out there, many with low or no minimum opening balances. Especially if you’re comfortable with using an online bank, you can find excellent rates and easy access—but not too easy!
The first thing you want to do, once the account is established, is set up an automatic deposit plan into your new account. This can be an automatic debit from your payroll, or from some other account, like your checking account. The important thing is that it’s set up to happen automatically. The money will be deposited into your savings account without you having to write a check or even think about it, which makes things much easier.
Now that money is going in the account, decide on some goals. Do you want to reach $1,000 and use that as a household repair? Are you saving for a new car? How many months of income do you want stashed in an emergency fund? Decide on your goals and the amounts, write them down, and then post them somewhere where you can see them.
Now, figure out a few simple ways you can save some money, and stash it in that high-interest account. Can you pack your lunch a couple times a week? How about quitting smoking? That alone can save you hundreds per month. Can you carpool or use public transportation at least part of the way to work? With gas at record prices, that one change alone will save you a lot of money.
Once you’re saving money, make sure you put it into your high interest savings account. As your balance changes, write it down beside your goals. Seeing some concrete proof of your success is positive feedback and will help keep you moving forward.
Also, understand that, just like with any other forward progress, it’s likely you’ll have a setback during your savings period. Don’t let that dismay you! If your car engine starts smoking, you may have to withdraw some money. Consider it the reason you’re working toward that emergency fund. Once the car is repaired, start saving again. And give yourself a pat on the back that you have money in your savings account, and didn’t have to charge the repair on one of your credit cards!
Once you become comfortable with the monthly savings allotment, raise it. It doesn’t have to be by much. If you’re having $25 taken out of each paycheck and you’ve adjusted to that amount, try $30 or $35.
And remember, with a high interest savings, the bank will reward you every month with interest, which is money that will increase your balance on top of the amount you’re sending. Very soon you’ll reach your first goal, and then the second.
Using a high interest savings account is the first step toward financial freedom, so take it today.
First, find the right savings account. High interest savings accounts are out there, many with low or no minimum opening balances. Especially if you’re comfortable with using an online bank, you can find excellent rates and easy access—but not too easy!
The first thing you want to do, once the account is established, is set up an automatic deposit plan into your new account. This can be an automatic debit from your payroll, or from some other account, like your checking account. The important thing is that it’s set up to happen automatically. The money will be deposited into your savings account without you having to write a check or even think about it, which makes things much easier.
Now that money is going in the account, decide on some goals. Do you want to reach $1,000 and use that as a household repair? Are you saving for a new car? How many months of income do you want stashed in an emergency fund? Decide on your goals and the amounts, write them down, and then post them somewhere where you can see them.
Now, figure out a few simple ways you can save some money, and stash it in that high-interest account. Can you pack your lunch a couple times a week? How about quitting smoking? That alone can save you hundreds per month. Can you carpool or use public transportation at least part of the way to work? With gas at record prices, that one change alone will save you a lot of money.
Once you’re saving money, make sure you put it into your high interest savings account. As your balance changes, write it down beside your goals. Seeing some concrete proof of your success is positive feedback and will help keep you moving forward.
Also, understand that, just like with any other forward progress, it’s likely you’ll have a setback during your savings period. Don’t let that dismay you! If your car engine starts smoking, you may have to withdraw some money. Consider it the reason you’re working toward that emergency fund. Once the car is repaired, start saving again. And give yourself a pat on the back that you have money in your savings account, and didn’t have to charge the repair on one of your credit cards!
Once you become comfortable with the monthly savings allotment, raise it. It doesn’t have to be by much. If you’re having $25 taken out of each paycheck and you’ve adjusted to that amount, try $30 or $35.
And remember, with a high interest savings, the bank will reward you every month with interest, which is money that will increase your balance on top of the amount you’re sending. Very soon you’ll reach your first goal, and then the second.
Using a high interest savings account is the first step toward financial freedom, so take it today.