Wealth Creation Tip: The Two Types of Saving
There are two kinds of savings. The first involves accumulating money and storing it - setting it aside to allow it to grow in value. This is what you are doing when you make regular deposits into a savings or money market account or when you buy and hold savings bonds. The importance of saving cannot be stressed too much. It is critical that you develop the habit of saving regularly if you are going to improve your financial situation. "Pay yourself first." This means setting aside a regular amount out of every paycheck before you pay any other bills. Now obviously this is difficult to do if you are struggling every month just to pay your regular household bills. But with planning, discipline and some extra effort, it is possible. You may have to begin with a smaller percentage, or you may have to start with every other check. You can even start with $10 (or $5 or even $1 and the change in your pocket) in a jar or envelope. Label it with a goal or dream that you'd like t...