3 Ways To Kickstart Your Savings Account

For most people, saving the money that they earn is one of the hardest tasks possible. I mean, after taxes, bills and necessities, sometimes there’s hardly anything left. While it may be difficult to save money, saving is essential especially if you are planning on retiring soon or if you want to buy a house or upgrade your vehicle. To help you out, I’m going to share with you three surefire methods to kickstart your savings account..

Pay Off Your Debts

I know we’re going to be talking about saving money but your debt needs to be conquered before you begin to save some real money. How else are you supposed to put money away when all your “extra” money is going to paying your credit card debt? So what’s needed is to first concentrate on eliminating your debt. Put as much money as you can toward paying back this old debt. Oh and while you’re at it, be sure and not accumulate any new debt. Once you’re done paying off what you owe, take the monthly amount of your debt payment and add that to your savings account every month.

Extra Money

If you’re finding it hard to find some money to save out of every paycheck, I have another method for you to kickstart your savings account. We all get a paycheck, typically every two weeks, which comes out to 26 checks per year. But we get (hopefully) more money than that. Any given year you could receive bonuses from work, cash gifts on your birthday and a tax refund in April.

What you need to do with this money is deposit it in your savings account, all of it. Often times people get their hands on some “extra” cash and they indulge themselves by purchasing items they don’t need. That’s not going to help you or your savings account or checking account.

Control Your Spending

The main reason people can’t fatten up their savings account is because they can’t stop spending. Your money needs to go from your checking into your savings. Then once it’s in your savings, it needs to stay there. The concept is simple, yet why is it so difficult for people to actually do it? One reason is because of what’s called emotional spending. Life can be stressful and people often times seek mall therapy to help them through a rough week. But what you need to realize is that there are countless inexpensive things that also make you happy. After all, they do say that the best things in life are free.

If you follow these three methods (pay off your debt, save your bonus money and control your spending) you’ll be well on your way to beefing up your savings account…