Get Money to Save and Invest By Ruth Brock, Regional Extension Agent, Blount County

Do you have a savings or investment account, yet find it difficult to accumulate money to deposit into it? Many people postpone an investment program because they feel they lack the funds or discipline to do so. The following are some tips for getting started.

Pay yourself first through forced saving and investment plans. You should "pay yourself" every time you receive income. Think about treating investing as a fixed expense in your budget.

Make investing automatic. Arrange to have funds automatically transferred from your bank to an investment account. You can save and invest every payday in your employer's 401(k) retirement plan. If you do not have direct deposit, there is still an easy option available if you do your banking at a local branch. Typically, your bank can link checking and saving accounts together and establish automated transfers between accounts at a regular interval you select. Therefore, if you cash your paycheck every other Friday you could establish an automatic transfer of a set amount of money from checking to savings to coincide with this deposit.

Save extra funds. When unexpected money arrives, add this money to your investments. Examples of extra money might include a year-end bonus from an employer, a commission check, and income tax refunds.

Make installment payments to yourself. If you are making installment payments on a loan, continue making payments to your investment account after the loan is paid off.

Break a habit. Put aside the money you would have spent on the habit.

Be frugal one month each year. If you put forth a rigorous effort to cut corners on all expenses for one month of each year, you can accumulate a sizeable amount of money to invest. To accomplish this goal, cut back on planned expenses and question every expense. You may find there are many expenses you can permanently reduce or eliminate.

Try putting these suggestions into practice and watch your investment account(s) grow!

References

Brennan, Patricia Q., and O'Neill, Barbara M. (2004). Money talk: A financial guide for women. Ithaca, NY: National Resource Agricultural and Engineering Service.

Garman, E. Thomas, and Forgue, Raymond E. (2006). Personal finance. New York, NY: Houghton Mifflin Company.

Vohwinkle, Jeremy. (2008). Making saving automatic. About.com: Financial Planning. Retrieved January 9, 2008.

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