- You don’t have to put a lot in, start with something small like $20. Now you aren’t going to get rich with this but you will see your money growing.
- Set up an automatic deposit for $5 a week. We can all scrape together $5, can’t we (you can even start smaller if you need to)? After a few weeks you’ll see your account growing.
- As you feel more comfortable try to up the dollar amount, maybe $7 or $10?
- Once you’ve saved for a bit ask yourself if you can afford to put away some money that you will absolutely not touch for six months. It doesn’t have to be a lot just something you won’t be needing (ING also has no minimum for their CD’s). Really, don’t touch! You don’t want to use this money. Now take this amount and open up a 6-month CD in ING. This will give you a slighter better interest rate than your savings account. Remember though, you shouldn’t need this money for at least six months (12 months CD’s are even better but that’s up to you).
- When your CD matures (the six months are up) see if you can open up a new CD maybe with more money. Note: I’ve found that ING tends to give you a slightly larger interest rate if you roll over your CD. That’s a nice little bonus.
- If you have specific goals to save for you can set up different accounts within your account and fund them differently. For example, if you need to save up for the holidays set up a holiday account and put a few of your dollars in their every week/month, etc…
I didn’t mention it but you will need to have a checking account already. This will be where you transfer your money from into your ING account (and vice versa).
This in itself isn’t going to get you rich but it can help you to start saving more effectively. The hardest part is putting those first dollars in there and keeping up the discipline.
The journey of a thousand miles starts with the first step. The same idea holds true with savings and wealth – it all starts with that first dollar!
Let me know what you think and if this works for you! (Please keep in mid that I am not, by any means, a Financial Planner so please make sure you understand what you are doing before you put you money in an online bank).
What I will be looking into next for myself – Money Market Accounts at brokerage houses. I understand they offer higher rates and I would like to start investing in stocks.
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Before you invest in a certificate of deposit from J. P. Morgan Chase Bank be sure you understand their early withdrawal penalty. Once you understand the penalty, compare it with other financial institutions in your area before your invest.
It’s not always the rate. If you think you might need the money you definitely need to know what the early-withdrawal penalties will be.
ING is a great bank. I’ve banked with them for the past 2 years now, and have absolutely no complaints. I love that I can open multiple accounts, and use each for a different purpose. Plus the fact that purchases show immediately in the log is another great bonus.
We’ve been very happy with our ING accounts.