Financial Tips: The 10% Rule Of Saving
Saving money can be a difficult task. There are so many different vendors vying for your hard earned cash and commercials telling you that you need the latest products that it is very easy to find that you have spent too much of your salary and have not saved any money by the time the month is over. If this sounds familiar to you, then you may be interested in implementing the 10% rule of saving.
What Is The 10% Rule Of Saving?
The 10% rule of saving is one of the easiest ways to ensure that you are saving money each month and a good way to secure your financial future. In simple terms, the rule states that every time you are paid an amount of money, 10% of that amount should immediately go into a savings account. By transferring the money immediately, there is less chance that you will spend the money on unnecessary items.
Ways To Follow The Rule
Many employers have made it easy for their employees to implement the 10% rule of saving in regards to their salary. Employees that choose to deposit their paychecks into their bank account by direct deposit can list up to three bank accounts for deposits along with a specific percentage for each account. This allows them to place the 10% that they would like to save directly into their saving account without having to think about it each time they are paid.
If this is not an option at your employment location, there are other simple ways that can be used to follow the 10% rule of saving. One method is to have your checking and savings accounts at the same banking institution and have them linked so money can easily be transferred between both bank accounts. With online access to the accounts, the 10% that you would like to save can be taken from the checking account and placed into the savings account with a few clicks of the mouse.
Using the 10% rule of saving will help you increase the balance of your savings account significantly within a short period of time. The money saved can be used for financial emergencies or high-cost purchases that are needed for the household. This financial rule of thumb is easy to follow and can dramatically change your financial stability if you stick to the rule.
Related Content: -
Boomer and Retirement Weekly Reader - Home Repair Edition This past week contractors finished several projects on the exterior of our Tennessee home: painting, Dryvit repair, and brick repair. These are just the beginning of a long list of repair and renovation tasks that need to be completed before we consider selling and downsizing. Although we are unlikely to...... -
How to Start Saving More Right Now For many of us, saving is something that we always plan to do, but never quite get around to it. The bottom line is, if you don’t have a savings account and a regular plan for putting money aside, you may regret it in the future, especially as you get...... - Earn Higher Interest with a Rewards Checking Account Internet banks have become a popular place to stash money that we don't want to invest and may not need for everyday use. The original attraction of the online banks was that they paid higher interest rates on savings and money market accounts than we could find at traditional local......
-
Cost of Prepaid Debit Cards vs Balance Checking and Debit Accounts [This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]Now a days, credit cards are hard to come by. With banks failing regularly, the banking sector is under scrutiny. As a result, consumers are facing new challenges for managing their finances. For many people caught in the mire of our...... -
Capital One's 3.50% APY Online Savings Account Review Capital One is relatively new bank coming existence back in 1989. It has a number of different subsidiaries and offers dozens of financial products. It currently has about 15,000 employees and has an annually revenue of $10.7 billion dollars. Itâs headquartered in McLean, VA and its current CEO is Richard......
Leave a Reply