Money Accounts

You know it’s hard to save. If you’re buried by debt or have some substantial periodic expense, you’ve probably had problems putting some money away. Just remember how important this is to you and your family. If you’re single, you’re putting aside money for yourself and your future and for emergencies which you have no control over. Saving money is very important but at the same time it’s also important to get tips how to save money. Because it’s hard to convince yourself sometimes to put money away, you can try a slightly different approach, similar to dieting.

Putting Some Money into A Reward Fund

So how about splitting up the money you put away? By slowly moving some money away from actual savings and into some sort of reward fund, you get some sort of gratification for your efforts after a while. This can come in the form of maybe new shoes, new gadgets, a shiny new car(if you manage to save enough for that) or try something more memorable like a vacation, a flight to Europe, a safari. For a ten thousand dollar savings fund for which you take twenty percent to reward yourself for a job well done, you get a whopping two thousand dollars to splurge on yourself. It’s a very compelling argument for saving and the benefits can add up really fast!

But remember, as with saving, remember to put more emphasis on killing high-interest debt, especially credit cards. These are a killer. There’s not point in saving if interest rates on your credit cards are killing you anyway.

By practicing some disclipline in contributing to your savings and reward fund, the accumulated balance of these over the years can grow really quickly and as you discover how easy it is to build your nest egg, the experience becomes even more gratifying and addictive. Saving eight thousand dollars a year for 10 years will give you eighty thouand, excluding interest income! Quite a convincing argument for saving, isn’t it?

That’s it for today. Come back for more money saving tips!