Better Budgeting: Saving: How to Set Money Aside for Savings

Saving: How to Set Money Aside for Savings

Living a Better Life® (from the editor's desk)
by Michelle Jones

Saving is a life-long financial habit we should all strive to do well. Setting money aside for savings on a weekly or monthly basis can often be difficult though, especially for those living on a limited budget. Some families can simplify this task by setting up automatic deposits to their savings account through their bank. While others may need to look for more creative ways to build their savings.

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These creative methods of saving are helpful, not only because they result in money being saved, but because they also allow people to see and feel for themselves that the money is really available and can safely be tucked away into an interest bearing savings account.

There are endless ways to find extra money for savings but here are just a few of my favorites:

Include Savings in Your Budget

Somewhere after listing the mortgage and the electric bill be sure to include SAVINGS in your monthly budget. Sometimes, just having a plan for it is all it takes to see that savings account grow.

The Jar Method

Probably one of the most traditional (or, as some would say, old fashioned) ways of setting money aside for savings is the method of saving one’s change or small bills in a jar for safekeeping. This may not be a new way to save, but it works great. It's also a good idea to deposit whatever money you've saved in the jar right into your savings account at the end of each month. Then start the process all over again.

Money Saved, Can be Money SAVED

Over the years we have discussed thousands of money saving tips here at BetterBudgeting and just about every one of those ideas could be turned into a deposit for your savings account. Whenever I’m able to resist buying something that I can live without or save money on something that I decide to buy anyways, I just have to smile because I’ve saved another dollar (or ten, or a hundred, or whatever…) and those dollars add up. It’s great to feel good about the money you’re saving every day on (insert whatever you spend, or don’t spend your dollars on), but setting that money aside for your savings account at the end of the day is even BETTER!

Bonuses, Gifts and Tax Refunds

Instead of spending all of your extra cash received (via bonuses, gifts, tax refunds or other unexpected checks), put at least HALF of the money in your savings account. Do this every time you receive extra money and eventually you may have quite a nice nest egg, or at least an emergency fund that will be there when you really need it.

Write Yourself a Check

If all else fails and an entire month goes by without any new deposits for your savings account, write yourself a check and put that baby in the bank. If you don’t, one month could turn into two, and two months could turn into six, and before you know it, an entire year could go by without any money being set aside for savings.

What about you, have you developed a creative way to set money aside for savings?  Regardless of how much money you set aside each month (even if it’s just $5.00) or how you find a way set it aside, the bottom line is this: You are SAVING!

If you'd like to share one of your favorite ways of setting money aside for savings with our readers please contact me at editor@betterbudgeting.com, I would love to hear from you.

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Copyright © 2006 by Michelle Jones. All rights reserved.

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