Happy New Year Everyone! Today is a good day to start one of the most popular of New Year’s resolutions – to save more. Saving more is not just a function of spending less. Placing the money in a place that it is likely not to be spent in the near future is key. A strategy that works for many people is directly depositing the money into a savings account at specified intervals. Automatic deposits can be made weekly bi-weekly or monthly. Automatic deposits can be made through payroll deduction or through transfers from a checking to a savings account. Many deposit institutions allow you to set a deposit frequency that is convenient for you.

Avoid accounts that are attached to your most used debit card to prevent easy access.  The more inconvenient the withdrawal method, the more unlikely you are to withdraw it. Do make sure that the account is with a lender whose deposits are insured. Most banks and credit unions would comply with this requirement.

My savings has grown slowly by surely over the past few years since I instituted this method of saving. Every January I raise the amount that I save, forcing me to keep my resolution to save more.  Periodically I deposit additional funds but at least my base amount is deposited.

Everyone can save something. Consider starting with $25 biweekly if you don’t think you have much to save without withdrawing later in the month.  You can carve that amount from your budget with buying things on sale or reducing discretionary spending.  Watching the balance grow is inspirational and you will want to save more.

The small action of setting up an account today will help you reach your savings goal and give you a savings account that will have positive balance by the end of this year.  You will be surprised at how automating your savings will change how you feel about your ability to save.