One of my goals for the month is to provide you with some valuable ideas on how to improve your savings habits. And, while some of these savings tips may sound simple, let me share a little secret with you: The key to improving your financial profile isn’t about one killer idea or hitting the lottery, but rather its about developing a set of very simple and proven habits that work over time. These habits will set you in the right direction and give you the control over your life your are looking for.
I’ve learned that developing these solid habits while respecting my limitations (not taking unnecessary risks) has made all the difference. This also makes the journey much more enjoyable. If your financial life seems out of control, understand that you will start off slow and eventually gain momentum. Then, suddenly all of these habits will kick in and pay dividends. Pay attention to the order of things here because most people look for the results first with out practicing the habits. And it just doesn’t work that way. However, if you read most of the marketing messages out there it’s understandable why so many people fall off course.
Initially, these dividends are nickels and dimes. Then, they become quarters and dollars. Eventually, if you stick with what I am about to show you, these dividends become the equivalent of a phone bill, a car payment, the mortgage and eventually your entire monthly expenses. The idea is to make your money work for you versus you being a slave or subservient to money and debt.
Over the course of the next several days I am going to introduce these 4 Savings Habits to you. For today, we are going to look at your current savings accounts and show you how you can more than double the current interest rate being paid.
1) Get The Most Out of Your Savings – This isn’t the first time I’ve suggested the idea of making your money work for you versus you being a slave to debt. Previously I wrote How I am Earning 4% on my Checking Account and You Can Too High Interest Rewards Checking Accounts that are backed by FDIC banks currently offer interest rates between 3% t0 5%. I am guessing this is much higher than your big bank who is currently paying around .50%. That difference is around 3% to be conservative. On savings of $10,000 that is $300 per year of $25 per month. That’s your internet bill right there.
Action Step 1: Stop and evaluate your current savings accounts and check out Check Finder and locate a rewards checking account near you.
Next, we will look at how to stop paying unnecessary taxes.
Related posts:
- 4 Habits To Increase Your Savings – Habit 2, Don’t Withhold More Tax Than You Owe
- 4 Savings Habits To Increase Your Savings – Savings Habit 4 – Avoid All Unnecessary and Late Fees
- 4 Habits To Increase Your Savings – Habit 3 Use Cash for Discretionary Purchases
- How To Increase Your Yield by 45% With Tax-Deferred Annuities
