I need to save money but putting it in a saving account just is not working, can someone give me another way to save besides putting it in a saving account?
2006-11-27 04:33:14 · 5 answers · asked by dee 1 in Business & Finance ➔ Personal Finance
The absolute best way to save is to do it before you even get your hands on the money. Have a portion of your paycheck automatically deposited into your savings account. Check bankrate.com for the best savings rates.
If you have a 401k plan at work, have a portion of your pre-tax income put into it. This will save you money by reducing your taxable income and your employer will usually match up to a certain percentage. This literally is getting free money! If you think you can't afford it, just start out small- like 2% of your income. You seriously won't miss the money, and when you realize this, bump it up another 2%. Whenever you get a raise, increase your 401k contributions. When you get up to contributing 10% or more you are on your way to a rich retirement!
2006-11-27 05:38:17 · answer #1 · answered by beancounter 2 · 0⤊ 0⤋
We have trouble saving because it's not something we are required to do. You pay bills each month because you have to. When it comes to saving consider treating it like a bill. Determine how much you can save every payday and put it into your savings account like it were a bill. After a while you will adjust to the money your saving and it will become a habit. Once you get in the habit of saving it will become easier.
Don't get hung up at first on the amount your saving. It doesn't matter, what does matter is that you are systematically saving money on a regular basis. You can always increase your savings over time.
2006-11-27 07:56:14 · answer #2 · answered by Barry T 2 · 0⤊ 0⤋
Automate your savings. Either Direct Deposit a portion (I'd recommend at least 10% of your take home pay) into a savings account that you DON'T use to pay the general bills and tap for cash at the ATM.
Also, most banks will set up an automatic transfer to move automatically move a specified amount from one account to another on a specific day each month. You can even set up such transactions between your bank and an investment company money market account like Vanguard, which generally has higher interest rates than bank savings accounts.
Then, that automatic transfer becomes like a hard payment that you have to make each month and you have to make sure you have the money in your account for the transfer to go through.
I know it sounds simplistic, but it's truly amazing how you'll adjust your discretionary spending habits to accommodate after you set up the automated transfer.
2006-11-27 06:05:55 · answer #3 · answered by ZepOne 4 · 0⤊ 0⤋
Make one or more goals. My first goal was to get a comma in my savings account. I worked steady towards that goal and acheived it. My reward for that crossing that milestone, was spending all of it single weekend. LOL ... but you get my point. Save enough to buy some investment CDs. Go for as many CDs as you can buy in a year.
Reward yourself incrementally by cashing one in every once in a while and take a trip or buy something.
2006-11-27 04:49:11 · answer #4 · answered by AnswerGuy 3 · 0⤊ 0⤋
Action leads to motivation. Not the other way around. What do you mean "a savings account is just not working?" Stuff your mattress.
2006-11-27 04:45:14 · answer #5 · answered by Big R 6 · 0⤊ 0⤋