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Saturday, March 20, 2010

Personal Finance Planning - Why You Must Put Money in the Bank mo

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It is true, that by changing habits, being frugal and using personal finance planning, one can reduce their costs by quite a wide margin. Nevertheless, you must not forget that your bank balance also needs to grow. For many, saving money is not an easy exercise.

This tends to occur because many are unaware where their money is going or because they lack self-control when it comes to money. In this article, we will discuss some money saving tips to help you get your bank balance up giving you some security for a rainy day.

Nowadays, there are many people who spend their whole salary before even getting it. This typically occurs because we overspend the previous week or we purchase something that we simply had to have.

One of the first things you should do if you want to start saving a serious amount of money is withdraw a comfortable amount of money out of your account and store it away off site. The good thing about storing the money off site is that it won't be on your mind, however, you should never forget where you stored it should you need it.

If this tip is to work well, then you should only take tiny amounts of money. There isn't any point to taking more than you should to only have to spend it later. Keep in mind that even if you put away 10 dollars a week, this amounts to 520 dollars over an entire year.

Another great way to start to saving money is by checking out savings accounts with high interest rates. Believe it or not, but many banks offer these at rates up to 12 percent interest. However, before you get excited, it's vital that you understand the terms and conditions of such an account.

In order to qualify for the high interest rate, you normally are obliged to leave the money in the account for a specified amount of time, which could range from 1 to 2 years. It is essential that you use money that you know you can afford to part with for this duration.

In addition, you may be obliged to put minimum deposits on a monthly basis in your account to qualify for the high interest rate. Be sure that you completely understand the terms and conditions, otherwise this tip will backfire against you.

You may not think that saving small amounts will amount to anything. You must not forget that these small amounts will eventually add up to something significant. After a significant length of time you could find that these personal finance planning tips have paid off and you have a fairly large amount of money to your name.

Jenni Snook is the chief writer of http://www.HealthyWealthySoul.com, a website focused on providing people practical tips and resources on personal finance planning to attain both financial and spiritual happiness in their lives.

Article Source: http://EzineArticles.com/?expert=Jenni_Snook

Labels: finance planning, money in the bank, personal finance