By Taniedra L. McFadden
Have you been trying to save money for that special item? A new home? A new car? Well make 2011 the year that you make it happen. For some of us, savings can seem very daunting. For all of us, savings is possible. One of the keys to saving money is to make YOU a priority and pay yourself.
Think of this… When you get paid, what bills do you pay? The mortgage or rent, the utilities, your car payment, student loans. Why not add yourself to that list? Do you find that once you’ve covered your expenses and bills, that you have money left over for the fun stuff like the movies, eating out, partying? Then you have money to save.
One way to start paying yourself is through direct deposit. This way you don’t have to remember to do it or contemplate not doing it. Some banks or credit unions will allow you to open savings accounts with as little as $1. If you set up direct deposit, you can schedule a certain amount to be direct deposited into your account automatically. Some financial advisors suggest saving at least 10% of your paycheck and gradually increasing this percentage as savings becomes more natural. However, the amount you decide to save is truly up to you. If you need to start with 1%, then start there and work your way up. The idea is to get into the savings frame of mind. As long as you begin somewhere.
The money saved should be out of your immediate reach so as to remove the temptation to spend it. Try opening a savings account at a bank different from your regular bank. You should treat the money saved as if it doesn’t exist. Before you know it, you won’t even miss the money coming out of your paycheck. Since we tend to spend as much money as we have, if there is less available to spend, then you will spend less.
Keep in mind that this savings account should also be different from your emergency fund. However, if you are unable to save money for both, only touch your savings in the event of an emergency or when you reach your goal.
Make yourself a priority in 2011 and pay yourself. You’ll be well on your way to savings.
