How can I Save Money ?

It's challenging in today's world to save money, especially during the holiday season. Spending money on gifts and traveling to visit family can really put a dent in your wallet. Knowing when to set aside money for yourself can seem like a tall order during these festive times. In reality, it is not as hard as it seems. Just follow these easy steps:

1. Set a Goal – Whatever your reason for saving, you should always set a goal. For an "in-case-of-emergency" fund, you should work toward three to six months of reserves. A goal also serves as your savings inspiration. It is easier to save when you have an objective.

2. Pay Yourself First – Each pay period, set aside $20 to $50 to your savings account (Check out this new saving account from IceSave). An easy way to do this is with Direct Deposit. Ask your employer to deposit a percentage of your pay to a savings account and the rest in your Checking so you gain the extra benefits it entails. You won't miss what you've saved because it is taken directly out of your paycheck before you can spend it.



3. Systematic Savings – Besides using Direct Deposit, you can also set up weekly, biweekly, monthly, twice-monthly, quarterly, semi-annually, and annual automatic transfers to your savings account. Letting the bank make these transfers decreases the temptation to spend and puts your savings on "auto-pilot."

4.Open an interest-bearing savings account. It’s a lot easier to keep track of your savings if you have them separate from your spending money. You can also usually get better interest on savings accounts than on checking accounts (if you get interest on your checking account at all). Consider higher-interest options such as CDs or money-market accounts for longer savings goals. You can also open an online savings account with one of the companies that offer them. Look around for the best savings interest rate and try to find one that adjusts its rate as the federal interest rate changes. You can then set up an automatic transfer from your checking account to your high interest savings account. Many employers allow you to deduct savings from your paycheck. The money is directly deposited in your savings account so you never even see it on your paycheck. You can also have investments for retirement taken directly out of your pay, and the taxes may be deferred with this option. If you typically keep a large balance in your checking account, consider moving most of that money into a linked savings account. Keep the money in savings until it is time to pay bills, then transfer enough from savings into checking to cover your bills. Make sure you check with your bank to see what the minimum balance requirements are for your checking account so you don't get hit with additional fees.

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