Three Methods To Start Saving Now!!

If you are hoping to delve into the world of investments, you need to make sure you have some cash to work with. Wetting your toes on Wall Street does not require millions and millions - through so-called DRIP programs you can start with as little as the current price of the stock you are thinking of buying. The following are three favorite methods to start saving right now - these are methods which I have been sharing with students in my finance classes for several years; one of the following always seems to hit a chord...and over time it will help you build that nest egg you are dreaming of:

#1 - Easiest - Piggy Bank - Go out and buy a piggy bank, one that's not too small but not too big; the clear ones are great for this purpose because you get to WATCH your savings grow! Every evening, put all of your loose change into this piggy bank. Within a year you should have between $150 and $300 saved. It's not a lot, but this is money you'll never miss!! Make sure to set a goal for this money - you could deposit it in your savings account as an extra contribution, or you may want to buy something relatively large like a DVD player or a new component for your stereo system.

#2 - A Bit Harder - Breaking Bad Habits - We all have bad habits...some of us smoke, some of us drink too much, some of us chew too much gum and others eat too many snacks. Choose a habit - better to choose one you were trying to do away with anyway... (if you choose smoking...I highly recommend checking out www.smokeclinic.com ) Figure out what you spend on your habit daily. Quit your habit, and at the end of every week, put the money you would have spent on your nasty habit in a glass jar. At the end of every month, make a point to go to the bank and to deposit your extra money into your savings account. If you smoke a pack a day, for example, you'll be able to save an extra $1000 every year by quitting (not to speak of the health benefits and longevity which you will gain...!) This is money you can choose to use for an extra long weekend you would not have been able to afford otherwise - or just keep it growing to live a better retirement!

#3 - Requires More Financial Discipline - Extra Savings - Decide on a reasonable sum, preferably a round sum that comes in bill form i.e. $5, or $10 or $20. Get another glass jar, and at the end of every week - say, every Friday afternoon - put one bill in your jar. Again, at the end of every month make sure to make that trip to the bank and to deposit your bills into your savings account. If you know you just don't have that extra $5 or $20 bill, you WILL get along without it. And, at the end of the year, you'll have an extra $250, $500 or $1000 that you would not have had otherwise. Make sure to decide NOW what you want to do with the money at the end of the year. If you don't have adequate retirement savings or a rainy day fund - well, you'll know what to do!! :-)

Good luck!

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