There are many advantages to putting money in your savings account on a regular basis. One of the most obvious is that when you need money for unexpected events such as car repair, medical expenses or utility bills that are higher than expected, your savings account will be there for you to save the day.
However, the act of saving money is a difficult one for many people as they have trouble developing the discipline to put money into their savings account. Therefore, the effort should be to develop the discipline first so you can maintain the effort to save money over your lifetime.
Saving money is not an end, but a means to an end. In order to stay focused on saving money, you’ll need to set some goals. Ideally, you should set short and long term goals with your savings. Emergencies, large expenses and retirement.
The first goal should be to save up enough money to pay for most small, unexpected payments. Once you have reached that level, the next step is saving up for large expenses such as down payments for vehicles or homes. Finally, you can save up for the long term such as retirement or college for your children using investment strategies that pull money from your
Certainly one of the biggest reasons why most people fail to save money is that they try to put back too much at the start only to withdraw it when they have a payment to make. Instead, start off with an amount you can almost throw in the street such as $10 – $20 per week. Before you know it, you’ll have quite a tidy amount in your savings account if you keep it up on a regular basis.
Take Savings Directly From Your Check
If you have your payroll check direct deposited, check to see if you can have a small amount put into your savings account. If they do not have such a service, then transfer a small amount once the balance shows up on your account. It’s easier to develop the habit of putting money into your savings account before you start spending your paycheck, so make transferring the money the first thing you do.
Keep Your Change
One of the simplest and most effective ways to save money is keeping you change at the end of the day and putting it into a jar. By emptying your pockets of cash on a daily basis, you can start saving a little money each day which will add up over time. Every couple of months, go to the bank and deposit the money into your savings account.
Multiply Your Savings
While you should start small, set modest goals of increasing what you save each paycheck so that you can reach your longer term goals. It helps if you can actually create incomes streams for the express purposes of savings so that you can increase what you have in the bank.
By following these five ways, you can start building your savings so that you can reach your goals.