The following is a guest post about savings on behalf of Money Supermarket.
Recent research suggests that saving money is the highest financial priority across America. Over 30% of respondents felt that increasing their savings was their most pressing concern.
In a time of global economic recession and difficult financial times however, this may feel easier said than done. Where do you start when you want to create savings?
The golden rule is to research and create a sensible plan which you are happy to put into practice. Many people create a plan that involves major sacrifices.
The difficulty with this however, is that human beings are, well, human and feelings of punishment are not very motivating. It is much better to create something lasting and acceptable.
Firstly, create a spreadsheet of income and expenditure so that you know the amount of savings you can create each month. It may be that you can reduce some of your costs.
For example, monthly gym fees that you pay although you are too busy to get to the gym are simply wasted money, but have a great deal of savings potential for you.
Instead of paying that money to a gym, you could pay it directly into a high-yield account. Even smaller amounts add up nicely over time and help create a higher savings balance.
Then research the different types of savings accounts that are available. Accounts do vary in terms of interest rates and the specific conditions attached to them, so read the details carefully.
Use a reputable comparison website to help research the best deals. There are numerous savings accounts, so you are sure to find the perfect one for you.
Generally, the higher the interest rate, the larger your initial deposit has to be. Higher interest rates are also available for fixed-term accounts, where you cannot withdraw for a set period.
If you are saving for a special event, such as a wedding, these high-yield accounts can be very beneficial. Just ensure the set term is completed before you need to pay suppliers.
Creating a spreadsheet for a savings goal can be motivating and help you track progress. You will also be certain of how much you are saving, rather than it feeling vague.
This will, in turn, create more motivation to save even more. You may find new and creative ways to do so, including selling old books or starting a small business.
If you have a partner or family, get them involved too. If the goal is to save so that you can enjoy an amazing holiday to Disneyworld, the children will be more supportive than you may have imagined!
The key is to create a shared goal and always keep your outcome in mind. Fill a notice board with pictures of the destination or item you wish to purchase to keep you motivated.
If you wish to create savings so that you have them for a rainy day or emergency, imagine how great it will feel to have that peace of mind. Whatever your goal, enjoy the adventure and create fantastic savings!
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!