How to simply start saving


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a very simple step by step way to start saving your hard earned money. Forget disposable income, no such thing. Don't fall into the ATM or Debit card trap. Take control of your assets.

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How to simply start saving

  1. 1. How to Simply Start Saving You have to start somewhere
  2. 2. There Is No Such Thing As Disposable Income You work, you work hard, what if I told you to throw your money away? You would look at me like I had lost my mind. Advertisers will call anything that is not spent, like savings, discretionary money, disposable money. Don’t listen to the advertisers, they are trying to separate you from your earnings. This trick will allow you to start saving.
  3. 3. Your First Bank Account • Open a checking account – You will need a photo ID, your social security number, and a third kind of identification. • Ask your banker for two check registers • Ask your employer if they provide direct deposits to your account – Most banks will allow you to pay your bills on line for free if you have direct depositv • Keep in mind that banks have fees, including the cost of printing checks. vTalk to your personal banker about all fees, if you don’t like the fees at one bank, shop around.
  4. 4. Your First Direct Deposit Enter the amount into the first check register.
  5. 5. So why do I need a 2nd Register This is your checking account. This is your temporary holding account. Label it “Savings” so the two don’t get confused.
  6. 6. Pay Yourself First When you enter your pay deposit in the register, multiply the amount by 10% and deduct it from your checking account. Enter the amount into your “savings” register. Then forget about it.
  7. 7. Make it a Weekly Habit
  8. 8. All those Little Deposits Add Up When you have enough money to open a savings account, move your savings to it; or not, ask your banker about banking fees and choose the option which works for you.
  9. 9. Repeat
  10. 10. So How Do I Balance This Mess? Take the total amount from your savings register and subtract it from you bank account total.
  11. 11. Balancing Your Check Book • Once you know the amount you need to balance your account (total less saving register), it is just a matter of marking the items that have cleared your checking account register. – Here is a helpful site that walk you through the balance reconciliation process Checkbook.htm
  12. 12. What Should I Do With My Savings? 1. Don’t spend it, even if it is an emergency (unless you have completed #5 below). 2. Don’t loan it out. 3. Never bail anyone out of jail. 4. When you have saved enough equal to six months of net pay, invest it in a liquid (easily obtainable) account or fund. 1. This amount is now your “Emergency” fund, in case you lose your job. 5. Do it again.
  13. 13. Final Advise Just say NO to the ATM or the Debit Card, these transactions will trip you up when you are first starting to save. Banks charge fees on these transactions. Give yourself a “reasonable” weekly cash allowance and stay within that limit.