How to Build $1,000 in Savings – Painlessly!

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Saving Money: How to Save and How to Save More

Maybe you already have a budget, a high credit score and a great mortgage rate. Still, it seems that money never goes as far as it should. If you want to start saving, consider the following:

Know yourself.

If money slips through your fingers like sand at the beach, understand the reasons why. You might be carrying a heavy debt load or recovering from an unexpected financial event like a major car repair or medical bill. On the other hand, you might just have a habit of  buying what you want when you want it. Be honest with yourself as you examine your finances.

Pay yourself first.

This is a cliché because it works. If you save $20 from each weekly paycheck at 1% interest, you’ll have over $1,045 a year from now. Building a cash reserve is important. Taking it off the top ensures greater success at reaching this goal. Start small if you must. You can always increase the amount you save with each paycheck.

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Put your money out of reach.

 When building from zero, it’s a good idea at first to keep your money completely liquid so you can use it in a genuine emergency. Put your savings in an account where you can access it at any time. But don’t make that account too easy to reach. If you open a savings account with an on-line, out-of-town, FDIC-insured bank, you can still access your money without penalty. However, you will have to take extra steps, such as transferring funds electronically to your checking account and waiting several days for the transfer to complete.

Pocket change adds up.

 Saving your spare change will probably not pay for your retirement in Tahiti. But it’s amazing how much you will have on hand if you put all of the coins in your pockets, wallet or purse into a jar at the end of each day. When the jar fills, roll the coins and deposit them in your bank account. Chances are good that you won’t miss the coins, and you’ll grow your savings a little.

Save money one day at a time.

If you’re an iced mocha latte addict, the prospect of never having your favorite coffee drink again could be too much. But if you decide to skip the fancy vente and make your own coffee just for today, you’ll have a few dollars to bank. Does money burn that proverbial hole in your pocket?  Go ahead and deposit the $3 or $5 you’ve just saved, right now, today, before you spend it on something else. If you put $3 a day in a savings account at 1% interest, you’d have almost $1100 in a year. $5 a day would give you over $1800 a year from now. If you can’t sacrifice the latte, what else can you not buy, just for today, that would help you reach that savings goal?

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For more money-saving tips and tools, check out Quizzle.com, where you’ll find out your potential for credit improvement and get the most affordable credit monitoring on the web.

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