Automatic Savings Plans

In my last post I talked about ways to stop spending money, saying that it wasn't enough simply to save. That doesn't mean that focusing on saving your money isn't important! If you've read through any of your recent Social Security reports you'll find that even the federal government is working hard to encourage people to save their money and put it away for retirement, and the easiest way to do that is through some form of automatic savings plan.

After all, you can't spend your money if it's not there!

You have many, many options when it comes to automatic savings plans. The simplest is to look into a retirement plan of some sort, like a 401K or an IRA, which has the added benefit of generating a return over time; however, that doesn't take care of your short term goals or protect you if your investments fall through. Automatic savings plans like those offered through ING Direct (for example) provide you with an invaluable way to save money for both your long and short term goals.

How does it work? It's simple. You arrange for the company to make an automatic withdrawal from your qualified bank account on a regular interval (usually payday) for whatever amount of money you feel you can live without and want to put into a savings account. This can be as little as $20 a week…it's all about cumulative effects!

Over time this balance builds up and you can consider moving your money from an ordinary savings account to long or short term CDs (certificates of deposit) that will generate a high interest return in exchange for leaving your money with a particular bank. While you're not going to find yourself sitting on a cool million by the end of the first year, an automatic savings plan takes away your responsibility to save your money and provides you with a simple, easy way to prepare for your future.
Find more information to help you weather the recession and prepare for your future at http://www.1uptoyou.com.