Do not spend it because it is called savings

Do we need a soothsayer  to tell us that savings are to be saved? Many people do not have savings today because they never tag their savings as savings. My message to you today is: Do not spend it, it is called savings, Duh!

Saving for a reason

Why will you save money if you do not have a reason to? When we find reasons to save, we should tag that money and name it with that. That will help us stay within the plan. If you are saving for that exotic wedding anniversary holiday,  you do not want to use the money for the impromptu trip to Las Vegas!

Tag your savings

The simple way to do this is to tag your savings. Most online savings accounts are free to open. Some people tag any money in their accounts for a specific purpose. Other accounts like ING Direct have the capability of creating multiple sub-accounts, so all you have to do is create a sub-account for your purpose. Like “Wedding Anniversary”,  “Down Payment” , “Camping Trip” or “Christmas 2012″.

Self Discipline

Having done all these, one essential thing we all have to do is self-discipline. If you are not disciplined, you may still dip into the money earmarked for that trip and use it for something else. That is a no no. Saving and actually letting what you saved stay safe is one of the key ways to enjoy life in a financially comfortable manner. That is because rather than having to squeeze money out from you paycheck for that occasional expense, you can guiltlessly access the money you have been saving for it. As is sometimes said, if we fail to plan, then we have planned to fail.

The take home message here is : Leave those savings alone!

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