How to build savings

If you want to build your savings account you have to do three things:

1. You have to budget savings.


2. You have to make saving easier than spending.


3. You have to have a goal.

Budgeting for your savings. No one saves if their plan is to save whatever is left at the end of the month. Nothing is ever left. So you won't ever save. Instead, you have to pay your savings like a bill, pay yourself first.

How can you make saving easier than spending? Well, here are some tips.

First, use what banks have to offer.Most banks will link your saving and checking accounts, and will do automatic transfers from your checking to your savings. So, ask your bank about linking your savings and checking accounts via an ATM card. Then, set up three savings accounts with goals attached to them.

Your first is going to be called your cushion account, which is the one for emergencies, your goal should be to have three months worth of cash in there.

Your second is going to be your expenses account. This is for those unexpected bills, car repairs, etc. This should be like your deductibles on insurance, and then some.

Your third is your investment account. This is where you put money aside to invest.

If you want to save, the next thing you want to do is, use cash. The fact is that if you are going to save you do not want to carry your card around. You should only use it when you really need it. So, go to cash, and withdraw only what you need for one week. You will want to create a weekly budget so that you can do this. If you do this, and you do not carry a card, accessing extra money for impulse purchases will be a lot harder.

If you want to save money, be sure that you only have enough in your checking account to cover your bills. If you put extra in, it is too easy to spend. So, don't put it in and it will be easier to save rather than spend.

Don't carry credit cards. Credit cards are going to make saving very difficult, because you will spend money you do not have. So, instead, make sure you have enough saved for extra purchases, and then you will have money to save because you won't be spending money and paying to spend it.

Have a place for your savings. This is where those three accounts come in. You will want to put whatever is left after your bills and some spending money, into your savings. Anytime you get a raise, or, a holiday or birthday check, put that money in savings. The difference in a raise will go a long way to helping you save.If you get a raise, and put the difference into this account on a regular basis you will be able to save a ton. You will not even notice the difference if you never use it.

If none of this is going to work because of your spending habits, then you can get some help. You can ask your employer to direct deposit a bit of your check into your savings account. If you never see it, you shouldn't miss it, right?

Third, set up a plan. You have to evaluate yourself and know what makes you tick. If you can't save by paying yourself, then let someone else help you control your money for a while. If you want three months cash reserve, then put ten percent away until you get there. The road needs to lead you somewhere. So pick your goal, and then map out how to get there.