Save $100 a Week

Savings Contract.doc

Swap Savers Weekly Savings Chart.xls

A study conducted by Ventis and Wises in 2000 found how much you save has little to do with your income. The amount of money you save is related to whether you want to save and your willingness to adjust your spending to increase your savings. Saving money is about making a commitment and creating a habit. If you save a $100 a week, after a year you will have $5,200 or more if the money is deposited in an interest bearing account. If that amount is too much, start with a smaller amount and try to increase the amount every week. Here are some tips to help you save $100 a week.

Sign a Contract If you are going to be serious about saving money then you need to make a commitment. To demonstrate your commitment, sign a contract (I attached a sample) stating your intended goal of saving money and include the time frame. In the contract you can also state your reasons for saving money to help you stay focused on achieving your goals. After you sign the contract, post it in an area you see every day such as your office or kitchen to serve as a reminder of your commitment.

Create a Chart You can keep track of your progress by creating a chart (I attached a sample) of your weekly savings amounts. A chart is a concrete measurement of your success which will help you to reach your goals and show your accomplishments. The chart will also provide a reminder to transfer your weekly savings amount. You should post the chart next to the contract.

Direct or Automatic Deposit In order to truly save $100 a week, the money should be transferred immediately from your pay check. If your paycheck is every two weeks, then $200 should be transferred. By transferring the money the second you receive it, you will remember to save the money and you will not miss it. The money would be similar to paying a tax or other payment. If possible have the money directly deposited to your savings account. Instead of making deposits to a savings account you could also make additional payments to your mortgage or payment towards other debt such as student loans or credit cards.

Savings Accounts There are different types of savings accounts. You can have a savings account attached to your checking account or you can have a money market account through a brokerage firm. Typically a money market account earns more interest then a bank savings account. I recently opened up a separate savings account through ING direct which is an on-line bank. You can earn 6x the national average with this type of savings account and you earn the same interest rate regardless of the amount in the account.

If you would like to open an ING savings account and want a $25 sign up bonus send me an email at swapsavers@hotmail.com and I will send you a referral link. I spoke to an ING Direct representative on the phone who informed me about a current promotional contest. If you make a monthly automatic payment of $100 or more from your current checking account you can win a maximum of $5,000 a month (or 10 times the amount deposited so if you deposit $400 a month you would win $4,000, etc.) And there is a grand prize drawing in April for a maximum amount $50,000 (or 100 times the amount you deposited).

I also have a Money Market account with Bruce Pederson from Wells Fargo. You can contact him at 1-800-553-0031 to open an account or ask questions.

Save More Money If you have a tight budget and you are concerned about depositing money into a savings account or paying debt, reviewing your current spending habits to assess areas where you could save money. Here are some suggestions to save additional money: shop around for better insurance rates; buddle or decrease your cable, phone, internet and cell phone plans; carpool to work; use the library for DVDs, CDs, magazines, books and activities; read more savings tips listed in the Saving Swappers Group.

Earn More Money In addition to saving more money, you can earn more money by selling your unwanted items or getting an additional job such as babysitting, cleaning houses, or delivering newspapers.

Now that you read the article, get started by signing your contract. Once you are ready to make weekly saving deposits, respond to this post and update us with your progress. If we all support one another, we will have a greater success rate!