The secret to building healthy savings accounts is not so much the amount you save as it is the regularity with which you save. When a small amount is regularly deposited into a money market account, U.S. Savings Bonds purchased on a payroll savings plan, or C.D.s, interest is compounded, so your investment grows exponentially. You should review your income and expenses, using the Monthly Family Expenses and Cash Flow Analysis Chart . Review your expenses over the last 6-12 months to get a complete picture of where your money is going. Find the leaks and redirect that money to savings.
Smart savers are smart investors.
You need to know how to manage savings just as well as you would manage an investment portfolio. The easiest way is to ask your employer to automatically deposit it to your savings or money market account. There is no charge for this service. This enforced savings will help you live within your post-savings income. The key to effective management of your savings is to consolidate savings in one place.