The Secret to Saving
When it comes to saving money, it often seems as if some can and some can't. What secret do the "can's" know that the rest of the world just can't figure out?
Saving money is a basic part of managing your finances. It is necessary for financial success. It is necessary for many of the things you want to do.
Most people assume that in order to save, you need to have "extra" cash. Let me tell you, there is no thing as extra cash. That's like having extra cake. It is a misconception.
The key is having a spending plan and a saving plan. The spending plan is your budget. It helps you find the money you need for savings. It isn't extra money, it is simply money reassigned. When you set spending goals, you find that it becomes easier to save regularly.
Here is where the secret comes in.
You have to set a few short-term and long-term financial goals. Give yourself a time frame and dollar amount for each goal. The secret to saving money is to save it for something. You have to know what you are working towards. Write it all down and review it regularly.
Set up a separate savings account for your savings. If you are anything like my family, if you keep your savings in your checking, you will spend it. It is just too tempting and too easy to get to. Have your savings in a separate account.
Make yourself a budget that tracks your spending each month. No matter how much money you make, you need a budget. It is easy and simple. And it isn't a way to limit your spending, so don't think of it as a diet. It is simply a way to see where your money is going and how much you have.
Decide on how much of your monthly income you can put towards savings. Many people do this by a percentage. I say simply see how much you have left that you can put back. No matter if it is just $50 a month, start putting something into your savings. Even $50 a month becomes $600 for the year, without counting the interest.
The simplest, and most painless, way to put your money in savings is to have your employer deduct a set amount from your paycheck and deposit into your savings account automatically. If your employer doesn't offer this service, have your bank automatically withdraw the amount to your savings the day you are paid each month.
Out of sight and out of mind truly works.
When you find unexpected money in your life, such as a tax refund or bonus, you should put the majority of it into your savings account. This allows your savings to grow without any real sacrifice on your part.
It really isn't a secret. It's just that so many people don't know how to go about saving money. The secret is to get started today. Work on it for two months. Then it might just start to be a habit.
Related Tags: saving
Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are