How to create a savings plan that WORKS!
Mar 29 '00
Are you confused by all the choices out there about how to create a retirement fund? What about all these things about how to save up for a large purchase you are planning to make, such as a home's down payment? Looking for some easy answers? I have to admit, there aren't any. But, you can set aside an amazingly large amount of money without even thinking about it very easily.
The way to do this is quite simple. You just open an account at a credit union and start putting the money you do without anyhow into it. What is that? Is there such a thing as money that you don't use? Of course there is. Most people dump change into a can or bowl or some other kind of container. This is money you aren't using! Others have some kind of small additional income that gets deposited into a bank account that is really too small to be of any value. Again, this is money that isn't being used by you. What about those items you purchase that give you a rebate? You were going to buy the product regardless of the rebate offer, right? So whatever rebate you get is money you aren't using.
What's my point? All these little things add up. One of the lessons I learned from my Grandfather that has proven true is this: Keep an eye on the pennies and the dollars will take care of themselves. Did you know that a two pound seven ounce coffee can will hold $44 worth of pennies? How much would that be if it was full of nickles? The answer is close to $200. For dimes it would be almost $500 and quarters would be nearly $1200! That's a lot of money, and if you never spend your spare change, it can add up fast.
What about those little payments you earn? Like that 10% military or other type of disability payment you get each month? Then there is the small amounts of money you make from web based earning programs like this one. The average US citizen earns about $300 a year in rebates and coupon usage. And then there is the yearly Income Tax refund that we all strive so hard to get back from either the State of Federal Governments. Again, all of these things are sources of money that are largely ignored by you. Most people don't even consider anything less than $200 to be "real money". I know that I'll insist I am broke unless I have more than $100 in my wallet. The reason for that attitude is that the money is best used for daily expenses and not for fun stuff.
So what will happen if you start putting all these little things into a bank account somewhere and leaving it alone? It grows, and it grows fast! It will grow so fast that you will be amazed by how much you saved in just a few short months, never mind the balance at the end of a year. In addition, the credit union will give you even more money for having your "unused" cash in their account, most of the time making quarterly payments.
Now, why do it this way instead of using a 401K plan or some other form of high yield low risk venture? Again, tha answer is simple. Should ever really need the money you have set aside in this manner, it is yours for the taking. Take as much or as little as you need and leave the rest to keep doing what it has been doing all this time. With other programs, you can't get to the money until a certain amount of time has passed. Most of the time a crisis will happen when your money is in these programs and locked away from you without massive losses in the earnings you would have made if left alone. This is how these people make money, by using the cash on deposit and hoping that the "investor" will pull out before they have to pay up.
They my simple method for just a single year. You will be very happy with the results if you stick to it.
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BlackBear
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Member: Joseph Black Bear
Location: Kansas City, Kansas
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About Me:
Just a guy who loves reading, videos, RPGs and collects various toys.
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