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!
Showing posts with label Saving that hard earned money. Show all posts
Showing posts with label Saving that hard earned money. Show all posts
Friday, April 30, 2010
The Need to Save Money
Now I know that this blog is supposed to be all about making money and jobs, but please bare with me.
I've been thinking a lot about saving more money lately. Being self employed for me means that I work 3 to 4 times more than the average Jane does. I bust my ass for the money I earn each month. Yes, I can do it in my pajama's, but there's a reason why most days I stay in my pajama's. I'm working too many hours to change or even do laundry!
What does this all mean? It means that I need to be smarter with the money that I earn. I need to treat it like its precious. To me this means, I need to figure out ways to save more money. I know that if I am struggling with saving and stretching out my money then many of you are too. From now on, in order to help both myself and you, I am going to be adding a money saving feature on this blog....Stay tuned!
I've been thinking a lot about saving more money lately. Being self employed for me means that I work 3 to 4 times more than the average Jane does. I bust my ass for the money I earn each month. Yes, I can do it in my pajama's, but there's a reason why most days I stay in my pajama's. I'm working too many hours to change or even do laundry!
What does this all mean? It means that I need to be smarter with the money that I earn. I need to treat it like its precious. To me this means, I need to figure out ways to save more money. I know that if I am struggling with saving and stretching out my money then many of you are too. From now on, in order to help both myself and you, I am going to be adding a money saving feature on this blog....Stay tuned!
