Strategies for saving that really work

The following are some strategies for saving that will really work. Some are short term, and others are more long term:

Pay off high-cost debt.

High cost debt makes it next to impossible to save. So, if you want to save money, and really be able to, the first thing you need to do is pay off any consumer debt you have that has double digit interest. The high interest you pay is going to keep you from being able to save thousands of dollars a year. If you pay these off, instead of paying interest, you can pay money into a savings account.

Buy a home and pay off the mortgage before you retire

The sooner you pay off your home, the more money you free up to fill up a savings account. You have to make a long term goal to pay off your home sooner, however, just by putting a thousand or so extra year in can cut off thousands in interest, and years on the life of your loan, allowing you to have money to save.

Let your work help you.

It is proven that if you never see money, you won't miss it. So if you have trouble saving, then talk to your work about the possibility of having money automatically taken out of your check and deposited into your savings account. You can also save by participating in your employer's 401k plan. This is free money for retirement, so take advantage of it when you can.

Use automatic transfer from checking to savings.

Most people attempt savings by getting there check, deposit it, pay their bills, buy what they want, and then if there is anything left at the end of the month they save it. This does not work well because they usually spend all that they have. So, instead, what you should do is have an automatic transfer from checking to saving. You still have the money, and you can still get to it in case there is an emergency, home purchase, school tuition, or something similar. However, it means you actually save so that you do have money when it is needed. You really just need to talk to your bank, as almost all banking institutions will, on request, automatically transfer funds monthly from your checking account to a savings account, U.S. Savings Bond, or stock mutual fund. What you don't see, you will probably not miss, so give it a try.

Make it a bill.

If you want to save money, then you should pay yourself as if it was a debt. Make a savings goal, whether it is $1000 or $20,000. Then pay yourself off until you reach that goal. Pretend like it is a bill, and write yourself a check into a separate account each time you get paid, or when you pay your bills. As you watch your savings grow, you will find enough motivation to start paying yourself more savings.

A raise.

If you get a raise, put the difference in your paycheck directly in a savings account. You have been living without it, and you will be able to continue living without it. So, save it.

These strategies may not work for everyone, but there is something that will work for everyone, so make an effort to try as many as you have to, to come up with a savings plan that works for you. Most people find the best way to save is to have the automatic deductions from their checks. If you do not see it, you should not miss it.