Thursday, October 30, 2014
A Simple Savings Plan
Think about how nice it would be to have money in the bank.
It's important to save money, even if it's only a small amount each month.
Controlling and limiting your spending in order to put that cash in a savings account is a good habit to form.
Saving on a regular basis allows you to be less dependent on things like credit cards or other types of borrowing.
Here are a few simple steps you can take to make sure you're "paying yourself" first.
Open a savings and checking account if you don't already have one.
First of all, it's important to have a savings account to actually be saving money. Secondly, a checking account is extremely helpful for paying bills and keeping track of spending. But don't substitute savings with checking; you still need to have an actual savings account.
Always save a portion of every paycheck.
If you're a student and don't have a job, find a part-time job that will fit into your school schedule and begin saving. The more money you earn and save now, the less you'll have to pay later in loans. And make sure to have enough cash to pay for your textbooks and supplies. If you aren't a student, keep saving for the future anyway!
Set up direct deposit.
An easy way to make sure you're saving money is simply by having your paychecks directly deposited to a savings account. You can do this at almost any job.
Control and limit your spending.
The more conscious you are about how much you are spending on things and where your money is going, the more you will be able to efficiently save. Cut back spending money where it's possible and necessary. You might be surprised how much money you have to save when you're thinking about where it all goes.