For some, saving money is second nature. For the rest of us, Kiplinger’s suggests taking advantage of the one time when it takes zero effort or sacrifice to start saving: when you’ve just settled a debt.
Image: 401K.
It’s tempting to treat a settled debt like a raise, letting the monthly boost trickle away into “lifestyle inflation” or immediately financing a new purchase, but if you’re already in the habit of signing that money away to a car payment or to pay off your HECS, why not put it to work for you in a savings or investment account?
Alternatively, you may want to consider diverting a car payment you’ve settled or avoided altogether by paying it into a maintenance fund, to soften the blow of unexpected repairs and make regular maintenance easier.
How do you motivate yourself to put some money away? Let us know in the comments.
11 Tips to Be a Better Saver [Kiplinger’s Personal Finance Magazine via Budgets Are Sexy]
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