3 Tips to Starting a Savings Account
A recent survey from GOBankingRates.com said that nearly half of all Americans have nothing in savings or no savings account at all.
This is a scary statistic. What would you do if you lost your job and could not immediately get another? Are you relying on the government? Are you relying on others?
No matter who you are or what your circumstance, you need some savings. You can keep it in a coffee can, under the mattress, or in an institutional bank. The important thing is that you start today.
“Even though the future seems far away, it is actually beginning right now.”
– Mattie Stepanek
Most people have no idea where or how to start. It is really not as hard as you might think, even with your current budget.
1.) Devise a Plan and Execute it!
It is important to come up with a plan and start executing it immediately. The beginning of your future starts now! I would suggest starting with your paycheck. I would suggest pulling an amount from your paycheck and socking it away. It does not have to be much. It is up to you, but pull that amount out of each check before spending a single penny of your check.
For instance, say you get paid $303 a week. I would come up with a budget for $300, and take that $3 a week and put into savings. This is just an example, but you can round your paychecks down to the nearest, dollar, fifty dollars, or hundred dollar figure, and budget around that. That would allow you to immediately put that difference into savings without ever noticing.
So your plan in this scenario would be to round your paycheck down and save the difference.
This is a simple example of a single plan. Sit down and put pen to paper and come up with a plan. Give the plan a chance to work by executing it immediately. You have to start somewhere!
The “B” word. People hate it, but to be a successful saver everyone needs a budget. Budgets are simply an estimate of the money you have coming in and the bills or obligations you have to meet over a specific period of time. Money In – Money Out.
If you make $1,000 a month and have $800 a month in debt obligations that you have a surplus of $200. It is simple math.
You run into a problem when you run a negative. You are living above your means and BADLY need a budget.
Once again, you will need to pen to paper. Figure out what you are spending your money on. Can you cut any of these? Do you really need cable as well as Netflix and Hulu?
Make some decisions and come up with a budget you can stick to. Always budget for savings.
3.) Sell Assets
Take an inventory of your possessions and sell off what you no longer need, use, or want. You can resell just about anything! Clothes, electronics, furniture, jewelry, handbags, art, automobiles, etc. Take stock of what you have lying around and sell it!
You can use websites like craigslist or eBay to reach massive amounts of buyers.
You could also have a yard or garage sale.
If you do not have time, or want to mess with eBay or garage sales you can sell to pawn shops, resell shops, furniture stores, etc.
Get online and do a search for “used ______” whatever you are selling. For example, let’s say you want to sell your guns. Go to google and type in your city and the phrase “used guns.” A list of companies that sells used guns will come up. This is a great place to start. Simply call them and ask if they are buying.
You can repeat this strategy with just about anything. Used furniture, used clothing, used farm equipment, etc.
The key thing here is to take the money generated by liquidating some of your assets and put into savings. DO NOT spend this new found money! It will be hard, but put into savings and forget about it.
These 3 simple steps will have you on your way to savings in no time! Remember to plan and to execute the plan.