If you have no savings account or one that is smaller than you'd like, you're not alone. Almost 30 percent of Americans have no savings whatsoever. A staggering 62 percent have less than a $1,000 put away. Keeping in mind that most financial planners recommend a reserve that equals six month's worth of income, the majority of Americans are coming up short. Fortunately, saving isn't that difficulty. You just have to find the strategy that works for you. Following are three easy savings plans that anyone can follow.
Rounding up your purchases is an easy way to get a nice safety net built up in your account. It's really simple to follow too. All you do is round up your expenditures to the nearest dollar when you reconcile your account. For example, if you spend $9.50 at the corner store, you will record $10.00 and save the $.50. Doing it this way keeps the money you're saving out of sight and out of mind so you won't be tempted to spend it. Some banks offer this service and will automatically round up your purchases and send the change to your savings account.
Building on the concept that you're less likely to miss money that you don't see, you may want to consider placing a portion of your paycheck into savings each payday via direct deposit. When you set direct deposit up with your employer, you can funnel your money to multiple accounts. For example, you can send $50.00 to your savings account and have the rest of your check placed in your regular checking account. This cancels out the need for you to physically transfer the money, which is helpful because it's difficult to let the money go when you have your hands on it.
There are several 52-week plans circulating on the internet, but the premise of all of them is the same. All you do is put back a certain amount of money each week. Some start with putting away $1 your first week and raising the amount in $1 increments until you get to $53. This amounts to an annual savings of $1375. You can also choose to put back an even $26.50 for 52 weeks to arrive at the same amount.
There are several easy ways you can save money; you just have to start saving. Once saving becomes a habit for you, it will become second nature. Talk to an advisor, like Family Financial Partners, for more help.