With unemployment soaring, many Americans envy looking at their friends or family members who boast of savings account that can carry them through the rainy day and beyond. However, according to the President of Bills.com Ethan Ewing, just about anyone can save a little something in the future.
"The One positive element of our country's recent economic troubles: recession turned around American savings habits," said Ewing, who oversees a free online consumer portal Bills.com.»For several years, Americans saved 1 percent or less of their income (and in a few years, the savings rate was negative). Today, the personal savings rate is more than 3%. "
Any action consumers should take to create an emergency fund of any size will help their bottom line, Ewing added. Here is Ewing's proposals to get rolling emergency fund.
1. all that counts. Priorities of savings and set aside the most possible. Monthly savings goal Turn in "Bill" to be paid along with the other accounts. Ideally have the Bank automatically transfer money to your savings account.
2. stick to per cent. Vow to keep a certain percentage of all income. "Ten percent is a good start, but even if it is below, choose the percentage and stick to it," Ewing said. "Whenever you get a paycheck or other income, set aside a predetermined percentage of that."
3. Sock away windfalls. Save any additional money--from big client validation, gift, tax refund, or activities such as yard sale. Even small amounts such as discounts or co worker's lunch-time loan is $ 10. Prâtan'e extra-in addition to regular, pre-determined amount, savings will grow.
4. make work pay. Making work pay credit to $ 400 per worker's right, in most cases, would provide an additional $ 11 each weekly paycheck from April 1 until the end of the year. Save the credit to add painlessly nest egg.
5. adjust tax withholding and save the difference. Those who received income tax refund this year should consider filing a new form W4 with their employer. IRS online calculator can help you determine how much should be denied to cover next year's tax bill. Put an extra paycheck in cash savings.
6. save the shop "savings." If the grocery store register receipt says, "you saved $ 17.52 today," send that amount into a savings account. "You will be driven to hunt for bargains, as each transaction means that you pay yourself instead of retail," said Ewing.
7. ignore the raise. Ewing admitted that "most people don't get an increase in this economic environment." "But if you get one, budget and spend as if you don't. Set up automatic savings equal to the amount removed, your salary is increased (or even better results, round this number up). "
8. keep it safe. Emergency Fund money should be kept safe and affordable. It should not be in stocks or other investments that can lose value. Good options can be in a money market fund or stock certificates of deposit (CD). Funds will earn interest, and are not held without forethought.
9. pay it back. "If you have an emergency money, try to replenish the Fund as soon as possible," Ewing advised. Reduce costs if possible replace the savings. But always continue, making at least the minimum payments on the debt and always prioritize the mortgage payment.
"Exercising some or all of these steps, you will see your savings account to grow gradually," said Ewing. "If you need it, it'll be there for you; and if you're lucky enough to not need, you will soon find yourself with a sizable nest egg.
About Bills.com (www.bills.com)
Based in San Mateo, California, Bills.com is the free one stop portal where consumers can educate themselves about the issues of complex personal finances and comparison shop for goods and services, including credit cards, debt relief assistance, insurance, mortgages and other loans. As an online portal of freedom financial network, LLC, the company has handled more than 50000 clients nationwide since 2002, when managing more than $ 1 billion in consumer debt. The RSS feed is available at http://www.bills.com/news_releases/.
Bills.com is no. 257, a spot on the Inc. 500 list for the 2008 year and no. 3 spot on Entrepreneur Magazine's Hot 100 list of fastest growing companies of the United States. Company founders and co managers Andrew Housser and Brad Stroh were named in the Silicon Valley/San Jose Business Journal's "40 under 40" list in 2008 and have been recipients of Northern California Ernst & Young 2008 entrepreneur of the year award.
Bills.com is a free one-stop portal where consumers can educate themselves about the issues of complex personal finances and comparison shop for goods and services, including credit cards, debt relief assistance, insurance, mortgages and other loans.