Whether you make less than $20,000 a year or more than $200,000, you have the ability to save. Remain realistic, though. Not everyone can save 3-5 months’ worth of expenses. If you are not used to saving or think you do not make enough money to save, start small. Even if you can save only $5 a week, everything adds up: $5 x 52 weeks = $260 a year. Once you get used to saving $5, try saving $10: $10 x 52 = $520 a year.
You can start to get ahead by saving just a few hundred dollars, which can help you cover minor emergencies. Gradually increase the amount you save. Challenge yourself to slash more items from your budget. Before you buy something, think about whether you need it or simply want it. And most important, remain disciplined! Just because the money is there does NOT mean you have to spend it. Once you have a system, all your work will be worth it.
Personally, I set up an online bank account with ING (http://ing.us) because ING does not have monthly minimums or monthly fees. With ING I can create multiple checking and savings accounts and transfer money into each account automatically. ING also helps me remain disciplined, because I can only withdraw from a savings account six times a month. This decreases any mindless spending common with the use of a debit card. Both checking and savings accounts accept unlimited deposits.
For more ideas about how to handle your money purchase her seminar here.
—Contributed by Michelle Lee, Esq.