Pay Yourself First.
Many people think of saving as an afterthought, something to do
if there is enough leftover after bills, neecessities, incidentals, etc. Instead, financial planners recommend that your
first step upon receiving a paycheck or eveen a cash gift is to set aside some amount in a savings account. Saved money can be used for emergencies, vacations, holidays, bills, or for treating yourself. And what's better than that?
Ways to Start a Stash
You know all that spare change in your wallet and pockets? Lighten your load by throwing it into an oversized jar. Once the jar is filled, take it to the supermarket and cash it in. You'll be surprised how much money actually adds up. And here's the clincher: keeping loose change on hand means you'll never have to worry about having money for the laundry or parking meters.
Also, it's wise to save a fixed amount of your paycheck each week. For example, putting only 10 percent of your paycheck away will give you a nice little nest egg at the end of the year. Use it to buy yourself a car, a computer, or anything else you've had your eye on but couldn't afford.
Remember, through the magic of compound interest, your initial amount (principle) will earn interest. Then, the the principle and interest togethr earn more interest, and so on, creating a lovely snowball effect of accrued bonus earnings.
Last, but not least, set a saving goal. Saving towards something you desperately want, like a TV or stereo makes saving, instead of spending a breeze.
