Save Now Before It’s Too Late!

One of the common misconceptions people have about saving money is that you have to have “enough” money to begin saving.

Many people put off saving, insisting that they will start when they make more money, and they have some to spare. The unfortunate truth, though, is that you probably won’t start saving later if you aren’t already in the habit. It’s too easy to experience lifestyle inflation as you get raises, and the idea of saving falls to the wayside.

Instead, the time to start saving is always now.

Even a Little Can Make a Difference

Your best course of action is to start saving now. Look online. You will find a wide range of savings accounts for everyone. In many cases, you can open an account with as little as $25. Then, decide how much you can save each week. If you can only set aside $25 a week, set that aside. Just to get in the habit.

Over time, compound interest can help you increase the efficiency of your savings dollars. You should also be ready to increase your savings amount as you begin to earn more money. Make it a point, after you have started the savings habit, to increase your contributions every time you start making more money. Take 50% to 75% of your increase and save it. That way, you are setting aside more money without impacting your current lifestyle. You have room for a little lifestyle inflation, but not so much that you put your financial future at risk.

Look for the Best Yields

It’s possible to find a number of online banks that have competitive yields. BM Savings is a good place to start looking as you compare your savings options. You want the best possible yields, since that will improve the way your savings earns money.

Compound interest is your friend when you are saving. This means that your interest earns interest. This improves the speed at which you see increases in your account, and the early you start, the more time has to work on your behalf. Even if you have what you consider a small amount to start with, you can still get a solid beginning with your savings account.

The important thing is to start now. If you keep putting it off, eventually you’ll wake up one day without any savings and realize that you are in deep trouble. You’ll understand that you have no money saved up for a rainy day, and you are behind in your retirement goals.

The longer you wait, the more you will have to catch. Start saving now, with whatever you can afford to set aside. Use a high-yield account. Look for ways to cut unnecessary expenses so that you can save a little bit more each month. And also look for ways to earn more money. Every time you have an increase in your income, devote a large portion of it to savings on a regular basis. Over time, you’ll really start to notice a difference.

And, your future self will thank you.

About the Author

Miranda writes about financial topics for several web sites. Her blog is Planting Money Seeds, and her book, Confessions of a Professional Blogger, is available on Amazon.