Peace, Love, & Financial Planning
  • Home
  • DIY Tips and Tools
    • Glossary >
      • Accountant
      • Assets & Liabilities
      • Balance Sheet (Statement of Net Worth)
      • Cash Flow
      • Consultant
      • Credit Card
      • Credit Scores and Reports
      • Debit Card
      • Equity
      • Estimated Taxes
      • Income Statement
      • Independent Contractor
      • Interest Rates
      • Investment Terms
      • Liquidity
      • Overdraft Protection
      • Saving
      • Self-Employment Income
      • Self-Employment Tax
      • Sole Proprietor
      • Taxes - General
      • Taxes and the Home Based Business
      • W-2, W-4, W-9, 1099
    • Rules of Thumb
    • Books & Links, etcetera
    • Tools You Can Use
    • Debt Repayment, for real people
  • Blog
  • Case Studies - Storytime
    • It's Not Your Money! How to Deal With Taxes
    • How to Organize Your Money
    • The Artist Co-Op, A Good Idea?
    • The Dark Alchemy of Investing
  • Quiz
  • About Us
    • Thanks to Our Collaborators!
  • How to Hire Professional Help
  • Confused? Ask Us Your Questions
  • Buy the Book Support Our Work
  • Media
  • Library of Interesting Stuff
.

Have trouble saving money?  Here's an approach to help you create a savings fund that will grow over time...

3/25/2013

0 Comments

 
It's hard to save money.  There are so many claims on so few resources.  It can sometimes seem like it's hopeless to even try.  Not true!  Here's an approach that, over time, can work. 

Begin by opening an account that you don't have ready and easy access to. This account can be a savings account at a bank you don't often use, or an IRA or some other type of investment account.  The main thing is that it should be an account that you don't constantly tap into (like with a debit card).  If you want a tax deduction and can leave the money be for a long time, then look into an IRA.  If the tax deduction isn't so important to you, then look into a savings account. 
 
Then, begin to make deposits or contributions to this account each and every month.  The easiest way to do this is to have your bank or employer set it up so the monthly amount is electronically transferred over to the new account.  Don't transfer a huge amount at first.  Transfer just a bit, whatever you can comfortably afford.


Now, here's the trick:  every six months, ratchet up the amount of your monthly transfer by a little bit more, depending on what you can afford.  So, if you started with a monthly transfer of just $20 or $50 or $100, then in six months, ratchet that  monthly amount up to $25 or $75 or $125.  And then let it run for another six months.

After another six months, ratchet the monthly amount up again.  And then again in another six months.  Keep doing this for three years or so.

Before long, you'll find that you are saving quite a bit of money each month.  But you won't have to have a drastic adjustment process.  Over time, you'll be able to save a lot of money each month, but you won't feel the impact upon your lifestyle and expenses in such a dramatic way.

I hope this helps for you!
 
0 Comments



Leave a Reply.

    LG

     

    Archives

    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    March 2011

    Categories

    All
    Artist Blog
    Banks
    Cash
    Creating A Financial Plan
    Credit Scores
    Debt
    Debt Repayment
    Economy
    Employment
    Estate Planning
    Finance Blog
    Financial Planning
    Health Insurance
    Health Savings Accounts
    Home Page
    Hsas
    Interest Rates
    Investment
    Iras
    Knowledge Tidbit
    Money
    Mortgages
    Real Estate
    Savings
    Short Sale
    Skills
    Skill Set
    Student Loans
    Swampland Investing
    Taxes

    RSS Feed

Developed in collaboration with RISCA and Rhode Island School of Design Tweet