I know that not everybody thinks about saving money and that some that do just don’t think they have any money they can save. For some it’s always ‘next time’ or ‘maybe next year’. But I find that next time and next year doesn’t always happen. I know if you’re broke savings seem impossible to build. I have been there. Sometimes I feel like I’m still there. Bills, food, home repairs that you don’t expect and cannot afford happens. Even if you’re renting you are likely to have financial hurdles to forge through. It’s not easy, but it’s not impossible either.
Today I’m going to talk starting or building an existing savings account. How to do it, why to do it and can you really do it.
A tip I heard not too long ago was to zero out your balance.
To zero out your balance is not saying take your checking account down to a balance of zero. Do Not do that.
To zero out your balance means to get the balance down to numbers that have zero. For example:
$125.70 – Balance minus $5.70 moved to your savings will leave you with $120.00 in your account.
If you have the space try moving $25.70 to your savings which will leave you with a solid$100.00 in the checking account. Your savings will grow by the amount you moved to it to zero the checking account.
I know you might not have that much left after bills, food, car stuff and all those other life issues that eat into your paycheck every month, but you can still do it.
If you have $2.69 left after all your bills are paid, food bought and any other expenses needed are taken care of then you can move $0.69 to your savings and that would leave $2.00 in your checking account. By this method you have zeroed out the balance making it easier to balance too and still increased your savings by $0.69 for that pay cycle.
I know it probably seems pointless at first sight but in reality that minimum amount of change adds up. $0.69 done twice will give you an additional $1.38 to your savings account. Over some time this can grow and if you can make this zero out attempt after each paycheck you’ll be able to see the savings grow each month; no matter how small that growth seems it’s still growth.
It is also a good idea to have your savings in a high interest yield monthly savings account. I went with American Express for mine when I started. It’s a free account that I was able to start with under $1.00 and your interest adds up monthly.
Find what works for you and start doing it because tomorrow will have the same problem that today has and if you keep waiting for the perfect time you’ll never start your savings.
On the Financial Express section of my blog I’m going to talk about budgeting, investing, balancing and more topics that you might be able to use to help you move forward with meeting your goals. This isn’t an every day section as I like talking fitness, food and health but I will be talking financial topics here too.