The Ultimate Way to Save Money

I am joining Vicki on her Frugal Friday journey again this week on the ultimate money saving tip.

The ultimate tip to save money is to actually SAVE IT! You cannot save money any better than designating a portion of your income to savings. You can cut coupons, buy in bulk, and find all sorts of ways not to spend money on things you buy everyday, but if you do not turn around and save that money, you will just go and spend it on something else.

A good goal to shoot for is 10% of your income goes directly into savings every time you get paid- whether it is through a regular pay check, by the job, or by the month. If you do not make it automatic, it will be easier to find a way to spend it. I have my bank account set up to transfer money out the day I get paid. I never see it. I also set up an online account without access to a debit card so I really have to think before I spend the savings. You can set up an entire account without leaving your home. And the rates are not bad, sometimes better than your local banks (check for fees before you start- CitiBank is a great option). I easily transfer into my main household account, but it takes more than swiping a card.

This summer, when vacation time came around, we had some money saved and did not go into debt going on a trip. (My kids and nieces this summer on vacation.)

And right now is a great time to start savings for next year's Christmas gifts. Think of the relief you will feel when you don't have to figure out how you are going to purchase the gifts or use the credit card!

My ultimate tip to save money- open a savings account and use it!