How to Build a Savings Fund

tranquil penniesIn order to reach debt payoff goals, many of us have to completely redo the way we think about our budgets and spending. This takes a lot of hard work, discipline, and self-evaluation. Needless to say, it’s a process that can’t be done overnight.

So what happens when you reach your goals of becoming debt free? The relief of eliminating this burden on your life might make you think that it’s okay to also let go of your “debt payoff mode” financial philosophy. The fact is, this couldn’t be further from the truth. Now more than ever, you can benefit greatly by maintaining your debt payoff philosophy. If you roll over the money you were paying on debt into your savings account, you’ll be headed from financial freedom towards financial prosperity in no time!

If this is the first time you’ve ever really thought about putting money in a savings account, don’t worry. You can use the skills you developed in order to pay your debt off to achieve savings milestones as well. Similar to debt payoff strategies, there are many different things you can try and they’re not one size fits all. That’s why we’ve rounded up some of the best savings tips from around the web to share with you here. So take a look and find out which ones make the most sense in your life.

Introduction to Savings

If you’ve ever wondered how you should save, what you should save for, or what the point is of saving money in an account that gains little interest, then you’ve come to the right place. While the amount of savings differs for everyone, it is very important to have some money set aside for emergencies. Take a look at these articles to learn about how to choose a savings account and start building an emergency fund.

Savings Strategies

If saving money were easy to do, we’d all be buffing up our savings accounts every month. But between rising costs of living and salaries that don’t always catch up, it can be hard to even make ends meet from month to month, much less put money aside. Luckily, there are plenty of personal finance gurus who can find a way to save in even the tightest of budgets. Here are a few:

Teaching the Next Generation to Save

Starting a lemonade stand with your kids is a great way to teach them about managing money - and it's fun!

What’s the best way to make sure that the financial problems of our day don’t extend on into the future? Teach the next generation to save! Yes, most kids may prefer playing with their friends over talking about money with you – but if you make it fun for them then you can start incorporating lessons early on. Not convinced? Read some of these articles for help in getting started!

I hope this was a helpful introduction into savings techniques and why it’s important to focus on building a savings. Now, I’d like to hear from you! Tell us in the comments below about strategies you’ve tried or roadblocks you’ve come up against when trying to build a savings. Together, we can develop even more strategies to help everyone make their way to financial prosperity!

Image Credit for First Image: Jon Chambers
Image Credit for Second Image: eren {sea+prairie}

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  • Trevor Ricks

    This is a good mind set. Keep going with your savings plan once you’ve paid off your debts. I’m a runner and it made me think of going up a hill in a race. Running uphill is pretty tough and you have to spend extra effort. Once you get to the top of the hill, your natural reaction is to let off and take it easy, but we’ve got to keep going with that same intensity, even if we’ve already gotten up the hill.

    • Shannon_ReadyForZero

      Thanks for sharing this great analogy, Trevor! That’s the perfect way to describe this in a more tangible way.

  • Guest

    I’m trying to decide which is smarter: saving more and paying a bit less on my debt, or paying off my debt faster and saving less right now. Is the decision based strictly on interest earned in the saving versus interest owed in the debt? Or is it more complicated than that? Any advice is welcome!

    • Shannon_ReadyForZero

      Typically, we go by the idea of paying off debt as quickly as possible, which means diverting as much of your funds as you can to that goal. The reason we subscribe to this philosophy is because of the amount saved over time by paying off high interest debts faster. However, it is still important to think about some savings to have in case of an emergency while you’re paying off debt. I hope this helps!