This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

3 Techniques For Growing Your Savings Account





For many, saving cash is an impossible task. They've tried budgeting, jotting expenses in diaries, reducing indulgences. Nothing works. Their wallets remain as flat as a Nebraska cornfield prior to planting.

It's time to try a different tack, and the following three-step approach to savings is one that can yield success for many people. If you're one of those with problems growing your savings account, try following these steps.

Step 1: Grow your saving account by earning more

Many people try to save more by spending less, but can never quite pull off the task of reducing their cash outflows. Spending is just half the equation. The other half, of course, is earning. The more money you can bring in, the less mindful you have to be of pinching every red cent.

Even as the oh-so-slow recovery creeps along at a glacial pace, folks are managing to earn more in various ways. Moonlighting at a second job is the choice of some. Others are taking college or vocational school courses at night toward a degree or certificate that can put them in higher-paying jobs. Still others are renting out extra space in their home to boarders. With another source of income, the idea of saving isn't so daunting.

Step 2: Be strategic, not tactical

All too many fail to consider the impact expenditures -- often large ones -- have down the road on other aspects of their financial picture. They save tactically, rather than strategically.

Taking a strategic approach means looking not just into the immediate future but years ahead. You have just bought a home, committing to 30 years of mortgage payments. If you also buy the new car, how much will be left of your paycheck once you're footing the car payments? Would it be better to buy a used car instead? How much will the additional repair and maintenance costs on a used car set you back? Examining the totality of your financial situation rather than considering each individual expense narrowly can facilitate sound decision-making.

Step 3: Set goals for your saving account

One common trait of many successful savers is the willingness to establish savings goals, and then work toward and meet them. Looking a bit into the future, they decide that they will try to hit $1,000 in savings in six months, and $5,000 in savings by a specific date two years from now.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,886.99 -248.73 -1.37%
S&P 500 2,076.52 -24.52 -1.17%
NASDAQ 4,936.5240 -46.2850 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs