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Basic Tips For Building A Savings Account

In today’s somewhat vicious economy, saving up money can be quite a challenge.

The average individual has mortgage or rent payments, vehicle loan payments, food expenses, fuel expenses, and the list goes on and on. The problem here is that these payment rates generally go up every single year, making the concept of a savings account virtually impossible. However, for the thrifty individual with a clever state of mind, saving money is possible.

One way to save up money is to be particular on what you spend. Some people will not spend change. They will take all coinage and stick it in a jar until the jar is full. Then they will make the change and deposit it into their savings account. Most people don’t realize how much of our income produce change on a monthly basis. It is entirely possible to deposit $100.00 per month into a savings account from change alone. On that note, some banks offer the option of rounding up on debit usage. If, for example, you spend $20.05 with your debit card, the bank will round up that amount to $21.00. The extra .95 cents will be transferred from your checking account to your savings account. Change is not noticeable when it comes to how much you spend, but in savings, you will find that it can add up quickly.

Another similar way is to choose a particular type of bill to not spend. With this technique, most people choose the $1.00 bill. They will spend all other bills, but when they are given a $1.00 bill as change, it is put back for savings. This can add up very fast, with only a minimal difference in spending money. Some will choose both change and $1.00 bills.

Next, you have the option of bringing in extra money. We are not referring to taking a second job so much as finding a way to make a little extra money with minimal time invested. One option is recycling metal. In the time it takes to toss your empty soda cans into a different container other than the trash you can bring in enough money from recycling to create a steady income. For the internet entrepreneur, this can also be done by selling ad space online. There is always a market for those looking to spread the word of their business.

Savings

Lastly, there is the option of cutting something out of your life. If you will take a look at your everyday expenditures, you will likely find something that you are spending money on that you don’t really need. This can be something as simple as chewing gum. We all spend a large majority of funds on our wants as well as our needs. All you have to do is to be able to discern between the two.

In the end, saving money will truly make your life easier. It will allow you to sleep better knowing that you have “fall-back” funds, or even allow you to plan out next years’ vacation trip without worrying about where the cash to pay for it will come from. Saving money, however, you choose to go about it, is always a plus.