Saving: Starting Small

There are many, many people living paycheck to paycheck and paying down debt, who feel that saving is an impossible goal. If you are one of them, you are not alone. We’re here to help show you how to turn impossible into possible through simple small steps.

If you get paid on a regular basis, or if you know when some form of income is headed your way, stop to think about what is in your account today, and what will be in it tomorrow. Can you move even a small amount from your money management account (generally checking) into a savings account (your general savings or a specially designated one)? 99% of the time, the answer is yes.

Here’s an example. It’s Thursday night, and you get paid Friday morning. Do you need all the money in your checking account available while you sleep? Move a small amount you are comfortable with into savings. Even just $10 to start. If you do this the night before each pay day, it becomes a habit. Not every pay period may be the same. You may make more or less, and you may have fewer or more bills due. That’s okay; your amount can change as long as you are moving some and setting it aside. See if you can do $25, or maybe only $5 this week, that’s okay! It will all start to add up.

Once you have some funds saved, you can determine what to do with them. Can they help you make an extra payment on a credit card or loan you are trying to pay down or off? Can the funds help with something special you want that you can now afford? Or, can they be moved into a higher earning account. Remember, that your money can make money itself (earn interest or dividends) while sitting in a financial institution.

Saving is possible when you start small and build good habits.