We all have new resolutions or plans for the new year to improve ourselves, and one of the more common resolutions is to save more money. But why is it so hard to save? The biggest problem is that people treat savings as something that should be done after all of the necessities are paid. This usually means that by the time you pay all your bills, buy groceries, gas, and everything else, it feels like you have nothing left to save. That is the opposite of what you want to do. Think of your savings goal as a bill or expense--whether it is $25 a month or $250 a month--think of it as a bill that needs to be paid first.
One of the best ways to do this is by setting up an automatic savings plan. It doesn't matter if it is through your bank, brokerage, or retirement account, but you should be saving a portion of your income automatically. If you have to physically go to the bank and make a deposit, how likely are you to accomplish that? On the other hand, if you have $50 deducted from your paycheck every two weeks and have that money go into a savings account, how likely are you to miss it? When you don't see it, you don't miss it.
So, get 2008 off to a good start and begin your own automatic savings plan:
One of the best ways to do this is by setting up an automatic savings plan. It doesn't matter if it is through your bank, brokerage, or retirement account, but you should be saving a portion of your income automatically. If you have to physically go to the bank and make a deposit, how likely are you to accomplish that? On the other hand, if you have $50 deducted from your paycheck every two weeks and have that money go into a savings account, how likely are you to miss it? When you don't see it, you don't miss it.
So, get 2008 off to a good start and begin your own automatic savings plan:
Interesting on your comments on car purchase. We never, ever buy a car on time. We bring in our own insurance which is discounted as we are part owner of the company.
One beef we had on our last purchase was that they pulled credit report without even asking us. We made it plain that we were paying in full. Second was that they hit is for a fee for obtaining the tags. Since the dealer is less than two niles from the DMV, there was no reason for it taking almost a month for these tags to arrive. Somehow I think the dealer invested the title tax until the last minute. We got paper tags and the transaction date on the title agreed with our purchase date, but if this large volume dealer holding tag fees on a dozen cars a day that soon adds up to real money.
Being completly debt free for more than two decades, and with large assets we are in the minority. We never charge unless we know where the money is coming from. That started when we got married and continues to this day. With a mutual tax exempt fund that allows check writing we are in the drivers seat.
Yes, the new car was a Prius, which is giving us the ability to burn half the fuel of most vehicles on the road. Our worn out van was donated to the school system to train new mechanics.