Want money for tomorrow? Starting saving today! Those words are so true! The money you save today will be the money you can spend tomorrow.
While growing up, the old folks always told me to save my money in a bank. I listened for a time and kept my money.
When I was about 18, I talked with my mom about saving and not having enough money to spend on stuff I wanted. This was when she pitched her philosophy. If your bills are paid, and you have some leftover money, spend it if you want to. I, being I, took that advice and used it.
Now, with my Spender ways, I have very little savings.
Don’t be like me and spend all the money you have! Always save some. Want to know how to save and how much? Keep reading!
Two quick ways to save money
I’ve had a lot of savings accounts over the years, and they are an excellent way to save money, especially if you need to get to your money in a hurry.
When opening a savings account, look for one that will give you interest on what you put in. If you can’t find one that offers interest, that’s fine. The main task is finding somewhere safe to stash your money.
Read the savings account features of each bank you’re interested in. You want to ensure you are going with a bank you trust and getting the kind of savings account you want.
Roths and IRAs are great ways to save, but they are usually for the long-term such as for retirement. However, with a traditional saving account, you can access this money easier and without a penalty fee.
Certificates of Deposit (CDs)
CDs are an excellent way to lock up money for months or years. It works by opening one for a certain amount to keep for a certain amount of time. While your money is in the account, it earns interest. When you’re ready to cash in your CD, you’ll be paid the original amount plus the interest earned.
A CD can have a time frame of 3 months to 10 years. Some banks and credit unions have CD terms for longer than that. Some places require a certain amount to open a CD. Please pay attention to the features of each CD.
I don’t have a CD, but I have thought about it. Even did some research about it. Just have yet to take the plunge.
How much money to save
I heard somewhere that 20% is a good amount of each paycheck to save. Once you have the money you want to save, there are two easy ways to keep that money. A savings account and a Certificate of Deposit (CD). Both are offered by banks and credit unions (both online and brick-and-mortar).
The money that you make is your money. You earned it. Enjoy it, but don’t go overboard.
It’s a good practice to save about 20% of each paycheck (or as much as possible). It can be stored in a savings account or a CD to keep it safe and have easy access to it.
Remember, if you want money for tomorrow? Start saving today!
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