How to maximize savings
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Pay your savings account like a bill. The age old method of promising to put aside whatever is left over at the end of a month just doesn’t work well. When you get paid, the first thing you should do is put money away into savings.
Photo by Aytena
Budget a specific amount of your check to put aside every time you are paid. If over time, you think you can put aside more, go for it. Just be consistent.
Make sure you are earning interest. There are several excellent savings accounts that will earn you over 5% APY. I have accounts with HSBC, and ING Direct frequently offers good deals, too. This money will be liquid, meaning you can withdraw money any time, without penalty, if you really need to (the idea is to have a fixed amount that you can afford to set aside).
You should also make a deal with yourself that if you get extra money (gifts, tax returns, a bonus, and especially a raise) that you will use it to reach savings goals.