Steve Rhode - Money Coach, Holistic Business Coach
Steve Rhode - Money Coach, Holistic Business Coach
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Build a Big Savings Account in 5 Easy Steps (How to Save Money)

Saving money can be boring, that's a fact. But saving money is a critical and necessary step to your future financial health.

The easiest way to save money is to first review your expenses and see if you can't pay less for the things you are currently using. If you can, that will free up money you were needlessly sending to other people and instead you can use it to invest in yourself. Here is my reducing money guide.

Over these many years I've watched many people fall into financial trouble simply because they didn't have a boring old savings account. The many that saved put all of there money into complicated or restrictive retirement accounts. When an unexpected emergency arose they had to invade their protected accounts and pay a penalty.

Saving money can be very easy and provide you with a necessary safety net in case you need some cash in a flash. Borrowing money from yourself is much less expensive than taking a cash advance, payday loan or sucking money out of your 401(k).

The beautiful thing about saving money is that it has an immediate and continued payoff. Use the savings calculator below to see how small slow steps pay off over the long run.

If you are worried about having money to save I've put together a great page on how to find extra cash in your life.

Total invested each month:
Number of months/years to aquire sum:
Interest rate on savings: %

Total :

The Simple Plan

  1. The biggest mistake I see people making when they want to save it over committing to saving. Since they don't have a great awareness of where their money is going they set too much aside and then take it right back out to cover expenses. After a while they stop saving. Doing it that way is really a pointless exercise. Don't do that. Instead, start making small monthly deposits into your separate savings account. Then let it build up to a level that is comfortable to you so you don't have to touch it. Your money won't grow if you mess with it. Slow and steady wins the race.

  2. Put it on autopilot. I'm a pilot myself and there is nothing better than a good autopilot when you are busy and distracted. The same is absolutely true with savings accounts. If you put it on autopilot it will grow itself.

    Make sure your savings account lets you make automatic deposits into it each month. If you don't think about it and let the small deposits flow it will grow to amazing levels. It always does.

  3. Easy access is a curse. Granted you should be able to access your savings account but having it easily accessible on your ATM card is a curse. Somehow the money magically disappears for this and that. The best approach is to keep your money in a completely separate account that you can transfer from if you need to but can silently stand in the corner and grow, grow, grow.

  4. Interest rates matter. The interest rate is very important to making your money grow. If you put $500 a month in your savings account for ten years at 2.80% interest you'll have $69,182. But is you put it into a local bank savings account paying .3% you'll only have $60,915. You will have lost $8,267 that the other bank would have given you for free.

  5. Places to save. While I can't tell you about every bank in the world I can tell you that myself and people I know have really found these two places to be easy to work with and they pay very high rates of interest.

    Savings Account News

Copyright © 2005, Steve Rhode, Inc.