How To Be Smart About Saving

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Putting aside and accumulating money is easier with these strategies.

To complete this How-To you will need:

Goals
Interest projections
Automatic deductions
A web-based bank
Staggered Certificates of Deposit
A minimum checking account balance

Step 1: Save for something specific

Jot down a few big ticket items you'd buy if you had the money, and then open a savings account for each of them. Studies indicate that putting aside money is much easier if you are saving it for something specific. Once you've saved the money, you may find that you don't want the item after all.

Tip: Envision your goal as you make the deposit: Researchers have found that the brain gets almost as much pleasure from imagining a purchase as actually making it.

Step 2: Calculate the interest

Calculate how much money you'll earn if you put your money in various types of interest-bearing accounts. People often underestimate how fast their savings can grow; crunching the numbers could provide the inspiration you need.

Step 3: Have savings automatically deducted

Have savings automatically deducted; experts say it's one of the most painless ways to save.

Tip: If you get a raise, have the increase added to your automatic savings deduction immediately.

Step 4: Use a web-based bank

Consider keeping your savings in an online-only bank, where interest rates can be higher, since there are no bricks-and-mortar buildings to maintain.

Step 5: Stagger your CDs

If you park money in Certificates of Deposit, do what's known as "laddering": Spread money among as many accounts as you can, staggering their maturity dates. That way, all your money doesn't get stuck in a low-paying CD if interest rates go up, and you lock in the higher rates on some accounts if interest rates take a tumble.

Step 6: Keep the minimum in checking

Keep just enough money in your checking account to pay your bills. Even when interest rates are low, it makes no sense to leave money sitting in an account earning nothing.

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[mayrawolfy]

haha if i have more then 10 dollors its gone in 1.3 seconds

[GBS990]

What are CD's earning now?

Oh, about 1-2% per year

Thanks Obama!

Just wait until inflation hits, printing money to pay the bills never works, Thanks Obama!

[fooam]

those people that say that financial fitness is better than physical fitness are lazy haha

[dfgdfg888]

1:24

hmmmm... Seems legit!

[Tressco]

Calvinistic greed here on Howcast...

...pathetic...

[Extraabsorbant]

they forgot 'being a jew'

[miguelo012]

smart strategy, im saving for a new 360, but everytime i have a little money, i waste it = (

[ilikecandixD]

that was totally a fake mustche

[pksmb1120]

Discipline would probably be a better term. :) Patience is part of being disciplined. And a lot of times it's not easy I know.

[LegitimateLegenD]

They forgot 'patience'

every time I get alot of money, It's gone in 15 minutes...