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Budgets Are Proven To Improve Savings

Posted by: RateAPY Bank Rates News
June 3rd, 2010

Savings Are Easier with a Budget

It is much easier to spend without regard to where the money goes. However, that is no way to make sure you are getting the most of your limited dollars. Budgeting and tracking your spending is a proven way to improve savings.

Making and sticking to a budget is invaluable for:

• finding out your spending patterns
• evaluating and setting spending and savings goals
• keeping track of your money, especially with a computer software program like Quicken or Microsoft Money

Budget Regular Deposits To A Savings Account

A budget is not just for spending allocations. Regular deposits to a savings account should be prioritized above other categories, for example, entertainment. Creating and saving an emergency fund with six month’s expenses is step one. After that has been established, move on to longer term savings like retirement.

Shop the most competitive interest rates on checking accounts, savings accounts, money market accounts, and certificates of deposit.