The incredibly simple savings starter plan

by Richard
(Huntsville, AL)

Being human, you've heard all of the financial advice, and you know that the tough part is the implementation. You've heard that savings and budgeting needs to be a commitment, a plan, etc. But how do you get started? If you really change, won't it be painful?

Perhaps. Maybe it is so daunting that you will decide to think about it some more, maybe next week. If so, then could you do me a favor and just try one thing anyway?

Here is what I want you to do: Try opening an online savings account that you will set aside to save for just one very specific purpose. No commitment, no grand plan, just one tiny savings account. It won't hurt a bit, because you are going to start with $5 and set aside something painless, like $2 every other week to feed it.

You should make your savings goal something modest, like a new car CD player, instead of huge and daunting, like college tuition.

The idea is to get started, to get in the rhythm of saving at least a little bit. Then, if you like the taste of it, you might try starting a second account with a different purpose. Then a third, and so on, limited only by your need to save and your imagination.

Again, the key is to keep it simple and modest so that there aren't any reasons to object and it doesn't change your lifestyle. Then review the account periodically and note that you are getting paid interest and that the balance is growing. Success!

There are several types of institutions that offer savings accounts that can you can name and keep separate from one another. Some online banks and credit unions offer these types of savings accounts. Be sure to find one that won't charge you a fee for keeping small balances.