RateAPY

From Credit Addict To Savings Addict

Posted by: RateAPY Bank Rates News
May 27th, 2010

Get rid of the buy now, pay later mindset. Saving in advance for a large purchase, such as a new computer, is much more satisfying and far less expensive. Open an online savings account and set up regular monthly transfers. The larger the purchase, the longer you will need to save or the more you will have to deposit each month.

Create Savings Instead of Debt

If the computer you want is $1,200, set a savings goal instead of using your credit card. If you are able to transfer $100 monthly to your savings account, you will own your new computer in about a year. You will earn interest along the way and stay out of credit card debt, not to mention the computer you wanted may be on sale in a year, or you’ll be able to buy one that’s state-of-the-art a year from now instead of paying one off that’s already outdated!

If what you want to purchase is more expensive, such as a car, consider opening a money market account. Since you will likely be saving more money for a longer term, a money market account will earn a higher rate of return.