How To Build Up Your Nest Egg

Gathering up savings should be everyones goal. But just how you reach your savings goal is the hard part. This article will detail some of the steps that you should take if you want to get one step closer to reaching your own personal financial freedom. Here are the 6 key steps to building up your nest egg.

1. Set up an auto deposit from your checking account in to your savings account with your bank online. If you get paid on the 1st and the 15th of the month, set your auto deposit for the 2nd and the 16th of the month so you don’t have time to spend your money, foolishly perhaps.

2. If you put some money, however small or big, into savings, do not take it out after you put it in. It can get to be a habit if you keep doing it. Your savings account can only increase, even by just a little, but it should never go down. The only exception would be a real emergency like an illness or if you are facing foreclosure.

3. Keep your money in an online savings account. They usually pay more interest than your standard savings account.

4. Treat your savings account like a utility bill, make a payment every month.

5. Log into your savings account and see your progress to keep you motivated.

6. Create separate accounts for emergency savings and regular savings. The emergency fund should have 3-5 months of living expenses and is never to be touched.

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