Everyone knows you should set aside a portion of your paycheck for savings, whether it goes into a retirement fund or just a separate bank account. How often does that number go up, though?
Money picture from Shutterstock
Finance blog Money Ning suggests that in order to build a healthy amount of savings, the chunk of cash you contribute should go up periodically. As an example, they suggest an increase of $50 every three months or so:
Make it a point to increase your contributions to savings accounts regularly. Boosting your contributions when you get a raise or a promotion is a given — but you should also do it even when you're not seeing a change in income.
Every three months, boost the amount you set aside. You can do this by adding another $50 a month to your contributions, or by upping the percentage of your income you're saving. Decide what you're comfortable with, make it a priority, then stick to your plan.
Is this too much or too little? Does a more frequent yet gradual increase in savings like the 52 week money challenge work better for you? Or do you only revisit your savings budget when you get an increase in income or substantial decrease in bills? Tell us in the comments.
4 Easy-As-Pie Ways to Boost Your Savings [Money Ning]