Ideas for Creating a Savings Account

This is going to be a series of tips on creative ways to shift some money over into a savings account or an emergency fund.  In these uncertain economic times, I think this is one of the most important thing you can be doing.  It certainly can be a challenge but is worth it if you're able to sock away your loose change on a regular basis. 

Tip #25

• We all have to start somewhere.  So even if you only have a little bit of money, it can add up and make a difference.  The important thing is that you are saving some money
• One of the easiest ways to get started saving is to have it automatically deducted from your paycheck.  This is what we do and I'm sure we wouldn't be as disciplined about savings if we didn't do it this way.  I know this is a really common suggestion.  But the reason for that is simple: it works.  Any time you can make something automatic it improves the likelihood that you will follow through and do it.
• Make a budget and add savings as a line item on your budget.  Make paying yourself a priority in your monthly budgeting.  It is just as important as your other bills (if not more so in some cases).  If you wait until you have extra money to start savings, it makes it harder to actually follow through.
• If you do get extra money (like a tax refund, a rebate, or a work bonus) put it in savings.  Having more money in your savings account makes you want to continue to contribute even more. 
• Sit down and create a savings goal sheet (email me if you'd like a template mailed to you).  Basically you just list out how much your planning on contributing to savings every month and how much you want to have at the end of the year.  It's important to be realistic.  If you know it's likely you will need new tires this year and that money is going to have to come out of your savings account, make sure and plan for that.  Get it all down on paper and commit to that goal.  Having purposeful goals in mind is much easier to commit to then just saying "I want to have money in savings."  

Check back throughout the week for more tips on savings!

Photo by luismi1985