Mandatory Savings

Mandatory savings account

There is an old saying that I’m sure we’ve all herd before, “The more money you make, the more money you will spend.” For most people this is completely true and for many years I fell into this belief. If you get a $100 month raise at work you automatically think you have an extra $100 to spend on something every month. You’ve got $2000 a month coming into the budget and $2000 going out to bills and expenses. 

When it comes to your savings account it’s very hard to force yourself to put anything in there each month, especially when you never have any left at the end of the month. How does one even start to save? Why do I need to save anyway when I have a credit card?

Well, that’s why you should pay your savings account bill first! With the growth of banks and online features that banks offer it is so easy to set up an automatic savings plan or have your employer set up a direct deposit. An automatic savings account can be set up in minutes and the money will automatically moved from your checking account to your savings account. It’s ok to start with a small amount and work you way up to larger amounts, just start with something. Something I don’t recommend is having a large savings account if you have outstanding debt with high interest rates, but it’s always good to have some money stashed away for a rainy day.

One of the best online banks for savings is ING direct. They always have the highest interest rates for savings and setting up an account is very simple. They will even give you money into your savings account for setting up an account with them. If you are interested contact me and I can send you a link in order to claim your starting prize.

Good luck saving!