I wrote an article about our family's experience with building up a savings– what techniques crashed and burned and then 5 that actually worked for us! Here's a snippet of the article, then a link to the rest, if you'd like to read it…
It wasn't long ago that my husband and I thought saving money meant moving $20 or so from our checking to our attached savings account once a month. We had no idea what we were doing. We’d just heard it was good to save, so we did — for about three days. Then we decided we needed that money, so we promptly moved it right back.
We were clueless. Funny thing is, at that time we were home owners and college educated. Guess what? None of that mattered because we were still clueless about saving.
Flash forward several years when we were dealing with an unexpected job loss. We had roughly $1,000 in savings, and the job outlook was bleak. I stayed at home with our three kids. That income loss really made us look at our finances in a whole new light.
I’m happy to report my husband found another job. After a while life did return to normal — a “new normal.”That experience really made us see how much more we could and should be saving each month. Now we’re constantly working toward a savings goal. In the past four years, we've paid off cars and student loans. We've built up a decent emergency fund, and we are currently saving like crazy to pay for a graduate degree in cash.
Is it easy? Not in the slightest. But we've caught the “savings bug” and now we can’t stop. We don’t want to stop. For many of you, you’re simply wondering how to start. For those who have never applied money toward savings, here are five specific steps for reaching your savings goals.
Read the rest of the article here…