Set Your Savings Goal & Make A Plan

The first step to saving money is deciding how much you want to save and for what. For me that was easy, I want to start small. If I plan for something big, I will get overwhelmed and lose track of what I want. So I am starting off with a goal of $500 and I want to use this money as an emergency fund. 

The next step is to set a time limit. At first I wanted to achieve this goal within 2 months. So that mean's I would need to save $62.50 each week. For many of you, that's loose change but with the amount of debit that I have in front of me at the moment, I need a little less of a commitment to start off with. So I'm going to give myself 4 months, which is $31.25 each week.

Now that I have a plan, what do I do with this money? Well, I could always use an old coffee can (kidding)! I want to make the most out of my savings, and the best way to do that is interest. The question is, should you put it in your regular bank account? That depends on your bank. In my case, the answer is an clear NO! To decide, you must first check out what your bank's interest rate is. My bank's interest rate on a personal savings account is .04%. I found a site called SmartyPig.com with an interest rate of 2.15%, which is a huge difference.

I'll keep you updated on my savings plan. Please share yours with me, I would love to hear it!