Saving Made Easy

• Pay yourself first when you write your monthly bills. Write yourself a check each month when you pay the housing payment & other fixed expenses.
  
  
• Fund your savings account with easy automatic electronic deposits. Start with a small amount (even $25 per paycheck will make a difference to your savings).
  
  
• Make a written budget, or spending plan, to see where your money is going every month. Prioritize your savings account, and cut back on any unnecessary or frivolous expenses.
  
  
• Paying off debt is a great way to save money. First pay off the bill with the highest interest rate. As you eliminate another monthly bill, you have more money to use for wealth building.
  
  
• Use cash whenever possible. Don't spend coins you get back as change when you spend paper bills. Instead, empty your pocket of those coins into a jar every night. Within a few weeks this “found money” will add up, and can be an additional deposit in your savings account, or used towards debt repayment.
  
  
• Whenever unexpected money comes your way, put all or most of it into savings. Think of your tax refunds, rebates, overtime pay, income from hobbies or yard sales—they all can boost your savings account without requiring any additional cutbacks in your monthly budget.
  
  
• Save your pay raise. Maintain your current style and cost of living, instead of increasing your monthly expenses to match your new salary. The extra money in your check can be directed automatically into savings.
  
  
• Use your emergency rainy day fund for emergencies only. Don't raid the savings for clothing, Christmas or other non-urgent items. When you do have an emergency and need to use these funds, consider it a short-term loan. Repay yourself by replenishing the rainy day fund as soon as possible.
  
  
• Start saving now. Even small amounts, if contributed regularly, will grow significantly over time.

• Keep 3 to 6 months worth of living expenses in a savings account that is easy to reach if you need to. An emergency fund will keep you prepared for some of life’s unexpected surprises, like car repairs, or a sudden layoff.
  
  
• Keep this emergency fund in a savings account that is separate from your checking account, and don’t raid the rainy-day fund for non-emergency situations.
  

• After your emergency fund is established, set aside money for any planned expenses you know about in advance: a vacation, wedding, or a Christmas account.
  
  
• Good short term savings options are: Money Market accounts and Certificates of Deposit. Both will earn interest that you can add to your initial investment.

Long Term Goals

• For larger expenses, build a bigger savings account by allowing your initial deposit more time to accumulate interest. Plan ahead for a comfortable retirement, or a child’s college education.
  
  
• Take advantage of your employer’s retirement savings account such as 401(k) or 403(b). These plans offer tax benefits. First, money is taken out of your paycheck before any taxes are paid, reducing your income tax burden in April. Second, your earnings grow over time, again tax-free. Many companies will match the contributions you make (up to a point). Don’t miss out on this “free money” when it’s available.
  
  
• Individual Retirement Accounts (IRA) and Roth IRAs can be opened if your employer does not sponsor a retirement plan.
  
  
• Consider a 529 savings account, or a Coverdell ESA (Education Savings Account) to cover college expenses. Both types of accounts offer tax benefits, as long as the funds are used for qualified expenses (generally fees like tuition, books, room and board).