Saving Habits

Pay yourself (save) first. If you wait to save until after you spend, amazingly enough, you find you have nothing to spend. But, if you save first, you have savings and your rarely have to go without something you really need. If you spend first, you spend on stuff you don't really need.

I have a seperate account for saving. It's an ING which has a high interest rate. What I do is have a % taken out my check. If I don't see it I don't miss it. Then I have a budget on all my household bills if at the end of the month I don't spend all the money from my budget what ever is let goes into the savings account. Before you know it it builds up quite quickly.

I like the idea of paying myself first. Not always easy to do, but what a great concept. After all, I'm the one who earned it, so why not pay me first?

I have always suggested taking at least 10% of your pay and putting it into a separate savings account before you spend any money. If you can have it direct deposited, that would be even better. At first, it may be difficult but you will get to where you will not even miss the money. Everytime you build up a few hundred dollars, put it into an individual retirement account or IRA. If you set up a ROTH IRA, you can not use the money as a tax deduction, but you will not have to pay tax on the money you invested when you retire. With a traditional IRA, you can deduct the money from your yearly tax return but you will have to pay tax on the money when you withdraw it later in life. The reason I suggest putting the money into an IRA instead of leaving it in a savings account is that a savings account is easier to get into, so spending your savings is easier. With an IRA, you will have to pay a 10% penalty if you take the money before you retire.