Not Made Of Money

As you earn to manage your money, savings accounts have to play an important part in your financial plan. Having a well-stocked savings account will allow you to save for future goals as well as build an emergency fund to cushion you from life’s unexpected blows. Before you can reap the rewards of having a healthy savings account, however, you have to find a way to funnel money into that account.

Make saving automatic. I firmly believe that the easiest way to build a savings account is to designate a fixed amount to go into your savings account regularly (weekly or monthly) and make it happen automatically. Whether you use a direct deposit designation through your employer or an automatic transfer set up through your bank, regular deposits that you don’t have to think about are the best way to get money into your savings account.

Build saving into your budget. Whether you use automatic transfers or prefer to handle your savings deposits manually, you must build your saving deposits into your budget. Don’t fall into the trap of thinking that your will just save everything that is left at the end of the month. Deposit your savings first so that you can ensure that you have something left for savings.

Turn your excess stuff into excess cash. Selling items that you don’t need or use anymore is one sure way to find cash to build your savings account. Hold a garage sale or sell big ticket items via Craig’s list. Your savings account will start to grow before your very eyes.

Sacrifice for your savings. When you can’t find room in your budget to build a savings account, the best thing to do may be to choose a luxury item from your regular spending (think Starbucks or Friday night at the movies) and sacrifice it for your savings account. Take the money you would have normally spent on that item and deposit it into your savings.

Work for your savings. Taking on a few extra shifts at work or picking up an odd job or two is a sure way to find extra cash for your savings account. Just be sure to deposit that extra money directly into your savings account so that you aren’t tempted to spend it on something.

• Storing Your Financial Documents: What to Keep and What to Shred
• Be the Author of Your Own Financial Plan

• Keeping Track of Cash Flow - Your Household is Your Business You should create a budget to track your spending and...
• Emergency Funds Make Your Life Better! (Or At Least More Stress Free) I used to think that emergency funds really weren't necessary,...