6 Easy Steps to Grow Your Savings

It’s Sunday afternoon and your sprinkler system just sprung a leak. Are you sweating at just the thought of an after-hours plumbing call or cool as a cucumber? If you have a healthy savings account you probably didn’t even bead up, which is exactly why having an emergency fund is a non-negotiable budget item. Trouble is many people aren’t sure how to get started saving money. I hear excuses that they don’t make enough to save or they have too much debt to save. But saving should be your first bill paid each month. The future well being of you and your family is too important to make excuses for. Here are 6 painless easy steps to get you started building your savings.

1. Set goals – Having a long term goal to work toward is an excellent motivator and the first step to increasing your savings.

2. Start Small – No matter what your income, you can find a few dollars to add to your savings each month. Even $25 a month will establish the habit of saving and as your income increases you can increase the amount you save.

3. Pay yourself first – This is possibly the most important step. If you remember to put that $25 a month into savings before any other bills are paid then you won’t find excuses for not doing it. It’s just done.

4. Make it automatic – The easiest way to pay yourself first is to make it automatic. Speak with a representative from your bank to establish an automatic transfer each month, on payday, into your savings account. You’ll never forget again.

5. Save your windfall – If you’ve received a bonus, tax refund or inheritance, SAVE IT! How many times have we received that money and run out to spend it. We tell ourselves, “Hey, we didn’t figure it into the budget so let’s spend it.” Wrong, spend a small amount and put the rest into savings. You’ll be thankful later.

6. Turn a payment into savings – As you pay off your debt and free up additional cash each month, add it to savings. Continue making the payment of the credit card you just paid off, but pay it to yourself. You’ll be surprised how quickly it will add up.

Do you have any tricks that have helped jumpstart your savings? I’d love to hear them in the comments.


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