First, and most importantly, if you want to build your savings you need to set a goal. How much do you want to have in savings? When do you want to have that amount? Be aggressive, but also realistic. I recommend setting a savings goal over an entire year. Once you have set a goal and a date to achieve that goal sit down and figure out how you are going to do it.
My advice is to lay it out on a good old piece of paper. Write down your current savings account balance. On each pay period write down an amount of money that you are going to transfer to your savings account. Write down how much you will have in your savings account after making each transfer. Each time a pay day comes transfer the money and check that transfer off of your list.
It sounds stupid, but I think it’s really important to write down each and every transfer along with the higher balance that you will have in your account. Writing down each one and then checking them off will help you feel a sense of accomplishment. It will also help you realize how much progress you have made.
I also recommend giving yourself a “treat” at some point as you are building your savings. Allow yourself to buy yourself something that you have wanted for a long time using a small portion of the money you have saved. This will keep you motivated to continue to save. But only transfer money out of your savings account for the planned purchase or a legitimate emergency. Don’t get into the habit of transferring your money into savings and then transferring it right out again to go out to eat or to buy a new outfit. If you aren’t making progress you won’t keep the momentum necessary to carry out your goal.
Have you ever tried building your savings account this way? Do you have any other ideas to pick up your savings? Please let me know in the comments. Happy Savings in 2015!
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.