This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Savings Kung Fu: How To Strengthen Your Financial Discipline

Successful saving has really only one rule: Make a plan and stick to it. The trouble with that is how easy it can be to let yourself get away with small infractions against the plan -- $5 here, $10 there -- so your mighty ambition to save perishes from attrition, suffering the death of a thousand cuts.

Fortunately, you can strengthen your saving skills with the right training program, building discipline like monks on their way to Shaolin mastery. Discipline with money is a lot like martial arts, actually. It's hard at first, but the benefits can last.

How to train your savings discipline

Rule No. 1: Establish a portfolio of savings goals

Ask yourself: Why do you want to save? Maybe there's a big-ticket purchase you're looking forward to, you've got kids to put through college, or you're taking matters into your own hands with your retirement savings. Maybe you just want to have a chunk of money at the ready, in case of emergency.

Whatever end you have in mind for your savings, it helps to know precisely what you're socking away for. In fact, if you want rule No. 2 to succeed, it's practically mandatory. Remember to set at least one short-term goal, too -- we'll get into that later.

Rule No. 2: Set up one saving account for each goal

A main vulnerability of the typical savings plan is the "big bucket" problem. That is, you take the money you want to save and you put it all in one savings account, or under a single heading in your mental budget. It can be easy to sabotage yourself when you're confronted with a large and looming sum of undifferentiated cash.

Establishing accounts with specific goals in mind helps because you know exactly which part of your future you're stealing from when you go to make a savings withdrawal. You might be more inclined to keep your hands off your savings if your pending balance transfer for that Amazon impulse buy is coming straight out of your new camera fund.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs