Back To Basics, Saving Money
We have been told to save money. Unfortunately many of us do not heed that advice. For many people saving money is difficult. Still for others it is impossible. So what if you decide to save money , but you don’t have any money to save? The fix for some could be as easy as purposing yourself to save money. Other may require more creative measures. Here are some steps that may help you. Many people found out the hard way the last two years or so how awful a rainy day can be. Protecting yourself from that dilemma is why you should be saving money with every paycheck
Paying Yourself First
Paying yourself first is a foundational principle to saving money. We all think about paying our mortgages, making that car payment or trying to pay down those dreaded credit cards. Before you write the first check or make the first online payment, pay yourself. How much or where you put that money is negotiable. Paying yourself first is not. Making that payment in the form of an automatic deduction for a online savings account will make it easier.
Compartmentalize Your Money
As a youngster I was told to save money for different things I wanted to needed in brown paper sacks. Seems strange I know, but you would do worse that opening different accounts for the various expenses that you will incur. Examples include, car payments, insurance premiums, or perhaps a new set of kitchen appliances. The point is save the money by compartment or department and keep you hands off.
Protect Your Savings From Yourself
Once your compartments begin to accumulate resources the temptation to rob the bank will surface. This is where you will need to have an accountability system built into you savings habits. Remember for the most part these are rainy day funds and unless sit is raining you would be better off to leave your accounts alone. Little things like requiring two signatures for withdrawal, or waiting a few days before the money is transferred to another account may ease the temptation.
Written by on September 14th, 2009 with
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