Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.

~William A. Ward

Saturday, January 26, 2008

There is a way to make saving effortless....Automate it!

Remembering to save is one of the most difficult things to do as it is usually the last thing on your mind. We normally plan on saving whatever is left in the checking account after all bills, personal allowances and impulse purchases are complete. The only flaw with this plan is: THERE IS NEVER ANYTHING LEFT OVER!

There is a simple solution to this obstacle: Automate your savings plan.

You might have heard of this strategy, it is called paying yourself first. The premise behind it is: you don't worry about what will be left over at the end of the month because your savings allowance has been deducted from your paycheck or checking account before you realize the month is gone.

Paying yourself first is so effortless and simple because it takes all of the planning off of your mind and you don't realize the money is missing.

Use the steps below to automate your savings plan. You will feel truly blessed when an unforeseen event occurs and your savings that you might have forgotten you had is there to save the day!

Step 1: Decide how much you want to save weekly. Ten percent is a good place to start. You can always save more later.

Step 2: Find a reputable online bank that pays a good interest rate on savings account. I use Emigrant Direct( but there are a few other good choices out there. Just remember to check with the Better Business Bureau about each bank's reputation. (

Step 3: Set up your online savings account and link it to your regular checking account. To do this log in to your Emigrant Direct account and click on the links tap at the top of the page. Then click "add account," enter your bank account information and follow the instructions.

Step 4: Set your savings account to draft your savings amount from your checking account every payday by clicking on the "transfer money" link and setting your date for the next payday and then every seven days. You may even want to set it for a day before your payday so that it will come out the same day your put your paycheck in. The procedure typically takes until the day after to actually come out of your account

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