I just talked to a friend who was complaining that she has to come up with $1000 every October and she has nothing saved up. I asked her if she could save $19.25 on a weekly basis. She said she could, if she cut out her morning coffee and took her own to work, and if she also skipped eating lunch out one day a week. I told her if she did that each week for a year, she would have her $1000. Actually if she put it in the bank, she would have a little more with interest. So, tomorrow she is going to schedule $19.25 to come directly out of each paycheck and go to her Credit Union Account.
That is a really great plan! Another one that I have started (and is really pretty easy if you try hard the first few weeks) is to NOT spend my change. If I use cash to buy something, I always round it up and give the cashier the next higher dollar amount. Then I bring the change home and put it in a little box...the box is pretty heavy after a few months of doing this and I have a "head start" on the CHRISTmas gift money! ;)
Sheila in Cocoa, FL
That's a good reminder that we all need, to save small amounts toward big bills. I do it on a monthly basis for bills that are due every 3 or 6 months like the newspaper, house insurance, etc. I divide the yearly totals of each by 12, and put that amount aside every month to save. When the bigger bills finally come, the money is there to transfer back to checking, and if there were a true emergency where we had to have the money, it would still be there.
Now if I could just make myself go make a list of all the household appliances that wear out every 10 years or so, and put THAT money aside. Can't afford to put that much aside in reality, but I can work on one or two. I've found that if the money is in my checking account, it's GONE, but if I don't have it there, I can do without a lot of 'wants' that I would otherwise have thought were 'needs'.
We balance our checking account online and have our savings account linked to it so when we log on, both accounts pop up. Our bank allows you to transfer from checking to savings an unlimited number of times (from savings to checking has a monthly limit). So once you make your deposits, get online and move some over to savings before you have a chance to spend it.
We also have the option of setting up an automatic transfer to occur on a certain day of the month, or once a week, or whatever. This way, if payday is the 15th and 30th, you can have an auto transfer of some set amount a few days later. Doesn't sting at all!
We no longer do it this way as my employer started doing direct deposit and allows us to have pay deposited into 2 accts. I have the 1st $400 go straight to checking and whatever is left goes to savings. That way I never wonder exactly what I will get paid. I always get paid $400. I forget all about the extra and it adds up fast.
I did this when I was a young single except I didn't have an automatic deduction. I just got my very tiny check cashed into 1's and 5's (now you KNOW it was tiny!) and I had envelopes marked RENT, CAR PAYMENT, INSURANCE, etc, I put 1/4 of each payment in each envelope every week. Sometimes my wallet (the FOOD envelope) was almost empty but I didn't lose my car or insurance and my rent was always on time.
I just cut/pasted/emailed this great tip to my daughter.
What a great idea!
I have a son who needs to read this. He just had to bail his dog out of the pound cause he jumps the back fence lately and he was pretty hard pressed to come up with the $$$. Spends it as he gets it...
Remember when you could do a weekly savings in a Christmas Club. My son saved all his change for a year, cashed it in and had $100 with only pennies, nickels and dimes. Came in handing during a move to another city. This was an excellent idea.
This is the first year that I have not had a xmas account. I did not think that I would miss it, guess what? I really do. Thanks for the reminder. I will start saving for next xmas as soon as we get this one over with! Have fun everyone!
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