Tuesday, June 12, 2007

Money saving tip...

In the spirit of a project from No Credit Needed, I have decided to make a brief post about my favorite money-saving tip. This tip is for saving the money that you earn from your paycheck while reducing or eliminating the urge to spend it.

Take your savings off the top of each paycheck. Designate a % of your savings to be saved, not a dollar amount. As soon as the check is in the account, immediately transfer your % into another account. Then pay bills. Whatever is left is available for spending.

I feel this tip is valuable because many people get their check, pay their bills and whatever else they need, and then save as much as they can of what is left over. Taking it off the top allows you to adjust to a reduced income while saving consistently. Consistent savings is the key.

1 comment:

Stephanie said...

I agree...as pretty much everyone says, Pay yourself first! They all say 10% is good to save off the top, but of course, if you can do more...do it!