As we all know saving money tends to be an extremely difficult task with all the bills and expenses we accumulate throughout the years. How can you fight back and defeat the non-savings bug? By utilizing smart money tactics and creating a barrier between you and your money.
Anyone can do it as the system is not prejudice to race, but favors towards stubborn minded people who stick to a system of always paying themselves first. Most people are set in their ways and do not want to embark on a mission to better themselves by trying new financial tactics. What new savings tricks have you done recently? If you have not gone out of you’re comfort zone, try a few of the tips below:
*Open an online only savings account and direct deposit a set amount per paycheck (Barrier 1)
*Apply for your employers retirement plan with at least the employer match or up to 15%
*Open another checking, savings account and do not get checks/debit card(Direct Deposit Also, Barrier 2)
*Open an online brokerage account for scenarios if you see a cheap stock or mutual fund( For Investing )
This is system will utilize the two other accounts aside from your main checking account to use for 1. Goal Savings, 2. Emergency Savings. They will both have a direct deposit from your paycheck unless you can be diligent and transfer the money yourself every pay period. Most people will eventually forget or decide after three deposits that they need the money for something else. If you set it up for direct deposit through your employer then you will be less likely to remove the system. It will continue indefinitely and grow over time to help you achieve that emergency fund you have been dying to fund for a long while. A automatic system like this is just the beginning steps as you can add even more layers to the mix with DRIP’S and DSPP’s. (Dividend reinvestment plans and Dividend stock purchase plans)
Saving Money Tactics:
-Match your Friday spending and save the same amount
-When you go out to dinner, save the same amount of the bill in online savings
-Get the biggest piggy bank and attempt to fill it with all the loose change you can find
-Pay yourself first every pay period, even before bills.
-Sign up for all employer sponsored savings / retirement / profit sharing plans. (Start small, then increase)
If you do all these steps you will have a great online saving money system that can not be stopped easily. Systematic barriers will help you grow your accounts without you ever interrupting it. Simple steps can lead you to a better more relaxed financial life. Also very important to consider always set up a beneficiary for all your accounts just in case an emergency occurs.
Contact me if you have any questions regarding setting up a system like this. But really all it takes is a desire to begin by guiding yourself to complete all the Saving Money Tactics.
Rich Uncle EL
Pic is courtesy of moneywatch101.com of a typical Bank in the old days.