A few weeks ago I introduced you guys to the Savings.com Savings Pledge, which is a commitment to be smarter and more savvy with our hard earned money. To date, y’all have pledged more than $5 million dollars in savings – way to go!
Since we’re talking about savings, I thought I might tell you a bit about my favorite mantra and method of squirreling away cash. First off, repeat after me – “Pay Yourself First!” Making yourself your first priority when you go to pay your bills is one of the quickest and easiest way to effectively build your savings bit by bit. Most people spend in this order: bills, fun, savings. By bumping savings to the front of the list, you can more realistically assess the fun portion of your spending and make the necessary cutbacks, rather than just saving what’s left after you’ve had all your fun. It may sounds a little counter-intuitive to put paying bills at number two, but really this is more a way of saying that you are your most important collector, which you are!
I will admit that as practical as this mantra sounds, it can be hard to implement. If you’re good at rationalizing like I am, then you need a little help in the discipline department when it comes to saving money. That’s why I signed up for an ING Direct savings account. ING Direct is a bank (FDIC insured) that focuses on simple, high-interest savings accounts. It has no fee’s, no minimum deposits, no tiered interest rates and my favorite feature, an automatic savings plan. Each month I have it set up so that on the 1st and 15th a set amount of money is transferred out of my checking account and into my ING Direct account. I set it and forget it – and to be honest, I haven’t missed the extra money since!
You can choose from a number of automatic savings plan options, so you can customize which works best for you. Another cool feature of ING Direct accounts is that you can set up to three accounts under your name so if you have different savings goals, you can customize your account to fit your needs. I have one savings plan for my emergency money and one for other goals (it changes all the time!), and I set up my automatic transactions accordingly.
Another plus of joining ING Direct is their referral program. For every friend you refer to their savings program that opens an account with a minimum $250 deposit, you’ll score $10 and your friend will score $25! You can do this a maximum of 50 times, or $500 <-- That's a lot to add to your savings!
If you’d like to learn more about opening an ING Direct account, you can go here to peruse their FAQ
If anything, just be sure to make yourself your biggest priority. After all, if you’re going to save it, it may as well be for a great reason – and YOU is pretty great 😉