1. Keep the change I: Whether you use a piggy bank, a jar or a great savings program like the one offered through Wachovia, make a habit of saving your change. When my husband and I shop, any change we receive is saved until the end of the day and deposited into a jar. Once the jar is full we roll the coins and deposit them.
2. Keep the change II: Many banks offer a program that will help you save money. For example I use the Wachovia Way2Save program.
With Wachovia’s Way2Save, each time you make a purchase or draft from your account you automatically deposit $1 into your Way2Save savings account. I have at least (5) drafts each month, therefore when I record my drafts, I add $1 onto the total of each draft. The extra $1 will be automatically transferred into my savings account.
3. Set up individual accounts for individual financial obligations. Some may be afraid to have more that one checking and/or savings account, but having all of your–eggs in one basket is what may be keeping you from saving money.
Having all of your money in one account can lead you to believe that you have money that you don’t really have. Mis-spending leads to overdraft fees. These fees can eat away at any chance of saving money.
Initially my husband thought several account would be confusing, but to the contrary it has helped us save even more. All of are accounts are set up to receive and deposit drafts into our main account. Our income is deposited into our primary account. From there we divide our money into each sub-account such as the one we have with ING. A portion goes into an account designated for gas, another portion goes into our emergency fund, some for home-school expenses another for groceries and even one specifically for drugstore purchases.
Having individual accounts keeps me from spending money that is designated for another category. Good budgeting habits is always a way to save.
4. Income Tax Return: Start or beef up a savings account with your income tax return. This is the easiest way to kick start your savings. Many tax preparation companies will even offer to open an account for you to deposit your funds into specifically for the purpose of saving.
5. Use new money: Christmas, birthdays, anniversaries and other celebrations are reoccurring events. These are events in which you should try to use new money to pay for. New money is simply money that is not a part of your paycheck. There are many ways to earn new money and I speak about them all of the time. Taking surveys, doing market research, participating in bank offers or rewards programs all allow you to earn new money.