Tips, advice, and the latest news from the savings world.
March 29, 2012
by Philip Taylor
You would expect advice on barriers to saving to center around things that are preventing us from saving money and how to remove those barriers from our lives. But I want to flip this concept on its head, and suggest that there may be barriers that you can use that will actually encourage you to save more money in the long run.
After I landed my first job out of college I decided I wanted to save up money for an emergency fund. I also tried to start saving for a down payment on a new car. My strategy was to spend 90% of my paycheck and leave 10% in my checking account until the end of the month. At which time I would transfer the money to a savings account attached directly to my checking account.
This was certainly a good idea in theory. But I always found it hard to reach my savings goals and maintain an emergency fund. Why? Well, truthfully, I screwed it up. Inevitably, the next month I would always find a reason to spend that "savings" in the attached savings account. This was mostly impulse spending. Getting the money back was as easy as doing an instant transfer back to my checking account. In a matter of minutes, I would have my money back in my checking account, which was quickly accessed using my debit card.
Then I discovered a few self-imposed barriers that would make it more difficult for me to take money from my savings. Let's look at how they each work:
March 28, 2012
Consumer Federation of America, the parent company of America Saves, partnered with the U.S. Department of Treasury yesterday on the new Ready. Save. Grow. initiative. With millions of people indicating they need a safe and convenient way to save money for their long-term financial goals, the U.S. Department of the Treasury announced, Ready.Save.Grow., which will provide people with information and access to affordable, safe and convenient Treasury savings options that can help people take control of their future.