You don't have to win the lottery or have a six-figure income to start saving for the future. There are ways to build up your savings quickly.
- Step 1: Put the money you used to spend each month on loan or credit card payments into your savings account when the debt is paid off. Since this money was not available to you, you won't think twice about its going into your savings.
- FACT: In the 1970s and 1980s, Americans saved, on average, 5 to 7 percent of their incomes. In the two decades following, personal savings declined to the 1- to 3-percent range.
- Step 2: Save your pocket change in a jar. You'll be surprised how fast the jar fills up.
- Step 3: Keep a careful record of all of your expenses. This way you won't be surprised when the bills come in later in the month.
- Step 4: Have money taken out of your paycheck and deposited automatically into your savings account. If you don't see the money, you won't miss it.
- TIP: Set up separate accounts for each goal on your goal list. This could, for example, include accounts for retirement, vacation, or a car.
- Step 5: Make a list of your savings goals and post it on your refrigerator. By writing down your goals and keeping them fresh in your mind, you will be more likely to achieve them.