2012年7月7日 星期六

How to Save Money? Put It on Autopilot


For most of us, saving money is not a particularly easy task. We all know we should have some money stashed away for various reasons, including planned future expenses and unexpected emergencies. However, there is often a disconnect between knowing the need for saving money, and actually saving money.

The trick is to find a way to make saving a regular habit. Saving money is much more difficult if we wait to have a "chunk" of money to put away. Instead, pick an amount of money to put into a savings account on a weekly, bi-weekly, or monthly basis, and stick to it. You can also think of this as paying yourself first. Chances are if you plan ahead to save a reasonable amount on a regular basis, in a short time you won't even miss it. The following are some tips and tools to help you achieve this goal.

1) Direct Deposit / Automatic Payroll Deduction

One of the easiest and most effective tools available to help enhance your money saving efforts is Direct Deposit. Direct Deposit allows you to choose a set amount from every paycheck to be deposited into the checking or savings account(s) of your choice. Many employers allow their employees to divide their funds to be deposited into multiple accounts. Taking advantage of this option can allow you to regularly fund your checking account (for your regular bills and payments), as well as supplement one or more savings accounts for various purposes (regular savings; escrow-property taxes & homeowner's insurance; car repair/replacement fund; emergency fund, etc.).

Specifying an amount to be directly deposited into an interest-bearing savings or money market account is quite possibly the easiest and least painful method of forcing yourself to save money on a regular basis. While it may or may not look like much each time, the regular and continual addition of deposits, as well as the compounded interest this money earns, can become sizeable with time. Even a small sum per check can grow to become a sizeable balance over time.

2) Automatic Bank Transfer

Similar to direct deposit of your paycheck into your bank account(s), an automatic bank transfer can be a great tool to help you pad a savings, money market, or even a brokerage account. Most banks provide the means to set up an automatic transfer of your money, free of charge, from one bank account to another at the same bank, or to/from an account at a different bank. This can be extremely helpful, especially to those individuals who do not have direct deposit available through their employer. In this instance, one could simply deposit his or her paycheck into their checking account. Transfer instructions could then be set up through the bank to transfer a specified amount from the checking account into a savings or money market account at the same bank, or at another bank. Many brokerage companies also allow for automatic transfers to be made to an individual's brokerage account from a bank account.

3) Change Jar / Piggy Bank

Don't laugh quite yet. Yes, even the good old jar or piggy bank of loose change can be a tool to help you build your savings a little bit at a time. Each and every time you come home with loose change in your pockets, put it into a jar. To further boost your efforts, occasionally, throw in a $1 bill, or a $5 bill, or maybe something even larger. Don't touch this money at all for your day-to-day spending. When the jar is full (or you just get curious about how much is in it), take it to your bank and deposit these funds in your savings account. Even better, if you have enough money in the jar, use it to buy a savings bond or Certificate of Deposit (CD).

No, your change jar or piggy bank will not make you rich anytime soon. However, you might be surprised how quickly your loose change can add up. After a couple of years, it's quite possible to save up several hundred dollars from this alone! The point is, even little steps can add up to make a sizeable difference in the amount of money you can save.




CuddleMyCash.com is dedicated to helping Americans take steps toward taking better care of their personal financial resources, and in turn, ensure a more comfortable and secure financial future for themselves and their loved-ones. Visit [http://www.CuddleMyCash.com] for more savings tips and personal finance information.





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