Automatic Savings

Having a automatic savings plan or method is very easy these days thanks to technology like e-checking , e-savings, and various money management apps. Here are a few ways to get your savings in order:

1. Divide your net income into percentages.

Whether it’s part or full time money, scholarships, or babysitting money all of the money you receive in a month, or a portion of your regular paycheck, should be divided percentage wise into certain funds for savings and investments or personal goals like getting out of debt/saving for a house down payment. I personally save 30% of every check I receive into my savings account for example. Identify an account to funnel these earnings into and deposit them into that account immediately. No amount is too small; even if it is $5/ week starting off, your savings will grow quickly through the benefits of compound interest.

2. Save your tax refund.

If your savings account already contains 6–12 months of emergency expenses(the norm), consider plugging your tax refund directly into your IRA or higher interest savings account. If saving all of your tax refund or any other refund like school is too hard try saving 50% and using the other 50% for needs and not wants.

3. Regularly deposit into savings.

Automated deposits are easy and effective because they take money directly from your paycheck and put it where you need it – into a savings account for living expenses or foreseeable emergencies for example.  Experts say a year’s worth but imo that's a lot starting off. Focus on building the habit of saving then focus on how much you're saving.  Also, try opening multiple savings accounts naming them the reason why you're saving. For example, I have a savings account named: 67 Mustang. I only send $2 a week to it but it's a start.

4. Favor interest-bearing accounts.

Once you’re saving, make those accounts work for you! Do your research online, or call up a bank representative to learn which accounts bear the most interest at your institution. Often something as simple as keeping less in your checking, which typically has a low interest rate due to the fluidity of the account, and more in your savings, can result in larger gains over the course of the year. Also, some banks offer higher interest checking account rates than others, which makes your money work harder for you. Check into Ally , the online bank.

5. Use a cash-back credit card.

When you spend, do so with a credit card that earns you cash back. Like any credit card, remember to treat it like cash, buying only what you can afford at that moment and paying it off regularly.

6. Household accounts.

Some banks offer benefits for “house holding,” or consolidating checking, savings, investment, insurance, and other accounts at the same bank. Others offer cash incentives or higher interest rates to those who meet a certain threshold of net investment with the bank. This is free money, so it’s worth a call to your bank to find out if they offer such a program, or shop around for a bank that does.

7. Know your bank’s rules.

Some banks charge a fee after a certain number of transactions between checking, savings, and/or investment accounts per month, or cap the amount of money that can be transferred in a single transaction or 24-hour period. Know your financial institution’s rules, and plan accordingly. You can also get around these fees by calling your bank and causing enough rucus. Be frugal, every little dollar adds up.

8. Automate bills.

You can’t become wealthy if you are always being hit by late fees. Save yourself the cost of all those stamps, by automating as many payments as you can. Once you have a cash-rewards credit card, paying bills from your card can increase your benefits even more.

As Always.......Stay Frugal, Live Gold.