Find ways to save money and reduce debts. A good financial plan provides guidance for savings and debt reduction. You may find that a change in spending habits can quickly increase savings so that you are able to reduce your debt level. Some people may also want to evaluate whether taking a better paying job or adding a part-time job would be a good idea.
A personal savings account may be the simplest way to save and protect your money. If you do direct deposit into a savings account, you may not even miss the money. You can earn small amounts of interest while the money remains in your account, but you are still able to access your money through a bank teller or an ATM (automated teller machine).
Saving money through banks, credit unions and retirement accounts are considered to be very safe methods to keep your money, as they earn interest and are insured up to a specified amount. A bank money market account is similar to a savings account, but tends to pay higher interest rates. Insurance protection for this type of account is the same as for savings accounts. Sometimes you can link the money market account to your checking account.
- Save money and reduce debt by taking steps, such as:
- Repairing or fixing broken items instead of going out to buy something new.
- Negotiating lower interest rates and no annual fees with your credit card company if you are paying high rates and fees now.
- Doing social activities with friends that cost less or are free.
- Saving cash and change found in your pockets or purse every time you empty them.
- Depositing unexpected money into a savings account, such as tax refunds and money gifts.
A personal savings account may be the simplest way to save and protect your money. If you do direct deposit into a savings account, you may not even miss the money. You can earn small amounts of interest while the money remains in your account, but you are still able to access your money through a bank teller or an ATM (automated teller machine).
Saving money through banks, credit unions and retirement accounts are considered to be very safe methods to keep your money, as they earn interest and are insured up to a specified amount. A bank money market account is similar to a savings account, but tends to pay higher interest rates. Insurance protection for this type of account is the same as for savings accounts. Sometimes you can link the money market account to your checking account.