Develop a Savings Plan
Use these strategies to help you get started saving:
- Pay yourself first. List savings as a fixed item in your spending plan. You are less likely to spend money you already have earmarked for savings.
- Use automatic savings methods. Set up an automatic transfer from your checking account to a savings account each month.
- Save all or part of a certain type of income. Designate your tax refund, annual bonus, tip money or proceeds from garage sales to savings.
- Establish savings buckets and watch these goals get closer as savings grow:
- Things you want
- Holiday shopping
- Create an emergency fund.
- Start with a goal of $500 (then build it up to the recommended guideline of three to six months’ expenses).
- Keep it separate from other savings.
- Use it only for emergencies, and replenish it after you get back on your feet.