by Julie Feuerborn, CFP© | Featured Contributor
When you save regularly, you’ll find that your savings add up quickly and they keep growing. Get in the habit and watch your savings grow and grow and grow!
The Savings Habit
The easiest way to grow your savings and to get that money working for you is to set it up so that you automatically add to your savings each month. When set up automatically you won’t have to remember to pay yourself and you won’t be tempted to skip a month. The simplest way is to have a portion of your pay directly deposited into a savings account. You won’t be tempted to spend it if it never reaches your checking account.
Set it up for pay day
If your employer can’t deposit a portion of your pay into a separate savings account, then on payday or the day after, set up an automatic transfer for a portion of your pay to go from your direct deposit account into your savings account.
By creating this automatically you will get into a savings habit. A regular saving habit is more important than the amount you put away.
Before you know it you will have a good start to your financial nest egg.
Magic of interest
As your savings build up, they will grow faster and faster, even when you are only depositing the same amount each pay period. This is the magic of interest. Einstein is quoted as saying that compound interest is the most powerful force in eth universe and it is incredible. You get to earn money without having to work for it. Interest paid on interest is magic!
How much to save
If you have money left over at the end of each month, you will have a good idea of how much you can save. That’s a good starting point, but challenge yourself to save even more.
If you usually run out of money before the end of the month, it doesn’t mean that you can’t save, but it does mean that you will have to change just how much is going out each month. Have a look for places to save to unlock your savings potential. You can find a little bit even if it means cutting back on that coffee you buy on your way to work. Change one habit for another.
A regular saving habit is more important than the amount you put away.
I recently read an article about a janitor that who managed to save $8 million. How did he do it? By saving regularly and the magic of investing and compounding interest.
Are you ready to create a regular savings habit that will set you up for life?
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Julie Feuerborn, CFP© is Julie The Money Coach which is the business she founded to empower others to take control of their financial destiny.
Clarifying the financial world for her clients is her passion. She eliminates the fear around making financial decisions by educating and mentoring (and sometimes hand holding) which creates financial confidence. She loves when a client understands the role money plays in her life because it creates peace of mind and because it adds a whole new level of possibilities for her clients to live the life they deserve.
Julie has followed her dream and since 1994 Julie has divided her time between Colorado and the UK with her husband and the youngest of their four children. She currently lives in rural England where she enjoys going for long walks and watching the sheep in the fields. Her other passions include international travel, reading, yoga, meditation, hiking and camping.
To read more about what Julie has to say go to: Julie The Money Coach blog
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