Going through a recession period, people now realize the importance of saving money. Although it is very low, American National Savings Rate has increased by 5%. This tells that people are getting conscious about what they have saved for their rainy days.
When to Start Saving?
Many people believe that, since, they can barely cover their monthly expenses; they are not in a position to save money. However, they don’t realize that saving money does not mean saving hundreds or thousands of dollars a month. Saving can mean saving the penny that you don’t bother picking back up from the ground. If you save money, penny by penny, you will see how fast that penny with no use changes into hundreds of dollars you can use to buy clothes. Therefore, everyone can save money at all times and under all conditions.
Tips & Tricks
For some, saving is not an easy task; they tend to use all that they have saved after every little while. Here are some tricks to build up your saving until they can be put to some real use.
• Deposit Your Savings in Online Banks
Generally, online banks require at least 48 hours before they complete any transaction. Sometimes you can’t resist spending your savings to buy something you just saw in the market. These 48 hours will be more than enough to cool-off such yearns.
• Make Your Aims
Making specific aims, helps you to overcome the temptation to spend your savings. Use a picture of your dream house, furniture, cell phone or an electronic gadget; stick it over the drawer or wherever you are storing your savings. This way whenever you watch your savings with clumsy intentions, the love for your dream item will help you cope with your ideas.
Starting with bigger dreams like a house is not a good idea, because remodeling a home takes a lot of money, and it takes time as well. Prolonged waiting periods without any success can easily de-motivate you. Setting up goals like clothes, cabinets and shoes in the beginning is better.
• Fix a Monthly Amount
Deal your savings like a bill to be paid. Fix a percentage of your income that you must put aside every month, when you get your salary in hand. Decide the percentage according to your expenses, you can always save a few bucks, even a child can save many from his/her monthly allowance.
Make sure that you pay the savings bill every month in the first place. When you start to realize that you really are saving and how money adds up, you can now increase the amount you save every month.
• Rounding Off
It is one of the oldest saving tactics yet always effective. Whenever, you buy something or have some change in your pocket put it in your piggy bank. There are many financial institutions like Bank of America, which offer programs like Keep the Change and Smart-cents. In such programs, whenever you make a transaction, leave some change in for these programs, and they keep on adding to your savings.