Different Savings Strategies For Setting Financial Goals
There are many different ways to start a savings plan for your financial goals but the first step to any strategy is to start a savings plan now! The best advice I can give is don't wait until tomorrow what you can do today and remember to always pay yourself first. If you pay all your bills first and pay for incidentals chances are you won't have any money left to save for your financial goals.
I'm not advocating you don't pay your bills but you can probably both pay your bills and start saving money. You can start by just placing your loose change in a jar. Granted you won't be saving much money by placing your money in a jar but you can use this money for a small goal you have or even place the money in a deposit account after the jar fills. Doing this will also entice you to start other saving strategies for bigger financial goals.
A little side note, don't use those change counting machines that take a percentage of your change. Some of these machines charge you as much as 7 or 10 percent which is criminal. Either count your change out the old fashion way and use coin wrappers or find a bank or credit union that has a coin counting machine
Start a savings account or certificate of deposit account that allows you to add additional money to the account. If you haven't opened a savings account or certificate of deposit recently you'll be in for a shock as far as where interest rates are these days. Both savings rates and CD rates are at record lows so brace yourself. The highest CD rates on 1 year CD accounts are just above 1.00 percent and the best savings rates are also at 1.00 percent.
To pay yourself first when payday comes around, always put a small percentage into your new savings account. Think of the amount as a regular bill you have to pay each month. Having the money placed into your account is best if it's done automatically by using direct deposit. Remember at this point the amount you put in isn't the most important thing, the point is that your saving money each and every paycheck is the important point.
You should also start a habit of saving any extra money you come across. That includes bonus money, birthday money, yes you might have a parent that still gives you that $50 or $100 each birthday, or any other source of money. A tax refund which is probably the biggest amount of money most people come across each year should definitively be placed into your savings account or CD account. Remember the best CD rates are on the longest term certificates of deposit, locking your money into an account for 5 years might prevent you from dipping into the account.
That money you spend each week on lottery tickets should be placed in a savings account instead. If you buy $5 a week in lottery tickets you're wasting $260 a year! Even if you are lucky playing the lottery I bet your losing money each year.
Try a really stringent savings plan just for one month a see how much you can save. Knowing that one month of extreme frugality will end in 30 days may help add to your motivation to save more. There are endless ways to spend money and there are endless ways to save money as well. Give up that fast food restaurant purchase and bring your lunch to work, both your wallet and body will thank you.
Basically start savings today and place any money you have saved into your deposit account. You'll be surprised that the more money you save the more money you'll want to save. You can also use our rate tables to find the best deposit rates available from banks.
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