Budget + Investment = Reward - By: Pete Glocker

If you find yourself using your savings account more often than you would like, then it is time to re-evaluate your spending habits. In doing so, saving money should become a breeze. To better reap the rewards of a savings account, update your budget to get the most out of your savings and become familiar with your banking options.

It may seem tedious and time consuming to keep track of every dollar you make, but it is necessary when you are on a tight financial rope. Click here for a budget worksheet to help you get started. Remember that this worksheet is only a template. You can create your own or just use a notebook to journalize your spending.

Once you have figured out how much you can safely deposit into a savings account, then your next step is to make the most out of what is being offered by banks and/or credit unions. Interest bearing savings accounts are offered with most major banks, but are they really giving you the highest yield possible?

One way to do some research on high interest yield savings accounts is through the Internet. If you are computer savvy, jump online and check out local banks as well as IngDirect.com or EmigrantDirect.com. These two web-based banking institutions typically offer higher yields with their savings accounts (four to five times as much) then the brick and mortar you will find locally. Linking up with an existing bank account of your choice, the Internet based banks will allow you to make deposits and withdraws as often as you need to. You have complete access to your money. It is no different than the conventional bank account. You receive the same benefits, with the exception that you do all of your banking through the Internet.

As with budgeting, when you put your money into a savings account, it is a good idea to review your financial goals. What do you have planned for the next 5, 10, or 15 years? When you figure out an amount you wish to save, you can safely make timely deposits into an account and watch your money grow. This can be done through a regular savings account, by purchasing a certificate of deposit or committing to a retirement fund. Both of the Internet based banks mentioned above offer higher yields of return for all of these options. Because an Internet based bank does not have the costs of a brick and mortar, their customers benefit from greater returns on their investments.

Whenever you open a bank account you want to make sure that it is benefiting you and not the financial institution. First, be an informed consumer. Review the bank's history and credentials. No matter the type of account you open, you want to make sure it is free of monthly service fees and that they do not require a minimum balance, in case you need to withdraw more than anticipated. Lastly, pay attention to the customer service you receive from the start. This will give you an idea of the type of service you will receive in the future. If you are not content, take your money and business to another bank. Do not settle for mediocre service. It is your money, invest it wisely!

The subject matter contained in our educational publications is for informational purposes only. We suggest that you consult your financial or other advisors when planning for your specific needs or requirements

About the Author

Debt Management Credit Counseling Corp. ("DMCC") is a 501c(3) not-for-profit charitable organization located in Deerfield Beach, Florida. DMCC provides free financial educational materials, seminars and a financial literacy program titled Debt, Money & Credit Concepts to consumers across the United States. DMCC financial counselors can be reached by calling 866-618-DEBT, emailing debthelp@dmcconline.org, or by visiting http://www.dmccorp.org .

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