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In addition to saving for an emergency fund, it is also a good idea to continue to save in order to have cash that isn’t invested in the stock or bond market. An old time stockbroker friend once said to me that it’s important to save enough out of every paycheck until it hurts. He felt when someone starts saving like this, she’ll start to curb her spending habits, and eventually it won’t be as painful.

In fact, you won’t even realize you’re saving if you try the following:

Direct deposit your paycheck. If you don’t already have your pay-check directly deposited into your checking account, start now! By not having to go cash your check on payday, you will eliminate the impulse to put more cash in your pocketbook (which puts off saving).

Order automatic savings withdrawal from your bank. Instruct your bank to make an automatic withdrawal of a set amount from your checking account, to a separate savings account at least once a month. By doing this, you won’t even need to think about saving on a conscious level it will automatically be done for you.

There are many ways to save money. Select the one that best fits your need for accessibility to your accounts, the interest you want to earn, and the amount you want to have in your account.

Long-Term Savings

Another extremely conservative investment for longer-term savings are EE Savings bonds. The interest is not very high on these and they are sold at a “discount.” This means a $50 bond is sold for $25. The interest earned is free of state and local income taxes. You can buy them through banks or call 1-800-US-BONDS to learn more about them. Many experts feel these are too conservative to consider. It depends upon what you want and your level of risk tolerance.

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