One surefire way of keeping yourself out of debt is to have a healthy savings account. If you have a good amount in your savings, the next time you make a large purchase you would simply use the money in your account rather than putting it on a credit card. What you need to know about having a healthy savings account is that the reason you don’t have one is not because of a lack of money but rather a lack of saving. Here are some tips to help you keep a healthy savings account.
You don’t want to save 50% of your paycheck, that’s impossible. But how about something like 10%? Even if it’s just $50 per paycheck, do it. You might not think $50 is much, but $50 every two weeks is actually $1,300 in one year. If you put that money into an online savings account you’ll end up with a bit more than that because of the interest you’ll be earning. That’s right, interest isn’t just something you pay your credit card company.
When you begin to save money it’s important to keep going. Don’t quit at any time because all of your hard work will be wasted. If you can save money for two months, you can do it again for another two months.
Did you get a bonus at work? Did a friend or relative finally pay back an old debt? Did you get your tax refund? If you get your hands on some unexpected funds, deposit them into your savings account rather than spending it. This will help you reach your savings goal much quicker.