Getting Into the Saving Habit

It's been a while! Just a brief update, we're now on our 34th week and the doctor says it is not surprising if I give birth on the 2nd week of September. Uh-oh, we're not ready yet! I have to think of my maternity leave and the onslaught of expenses. One of the sites that I frequent while pregnant is www.babycenter.com - and I think the featured article today is a perfect match for me. It's all about savings! These are stuff that one knows about , but sometimes, just can't get into the habit of! I'd like to share it with you :-) because I think it will help you and your family, pregnant or not!

10 Easy Ideas to Get Into the Saving Habit
http://www.babycenter.com/0_getting-into-the-saving-habit-ten-easy-ideas_1497539.bc?showAll=true

Log your spending habits for one month
It doesn't take a miracle to save money. It's as simple (and as difficult) as figuring out how to spend less than you earn. But before you can cut your spending, you need to know exactly where your money is going.So, for the next month, keep a log of all your daily, weekly, and monthly expenditures. Use a little pocket journal to jot down notes as you go, just as if you were keeping track of expenses on a business trip.Prepare yourself for some sticker shock. That harmless morning latte you buy on the way to work can add up to a tidy $60 a month, or $720 a year, or $7,200 in ten years — a nice chunk of savings. If your drink of choice is bottled water, fill your eight daily glasses at the tap instead and you could pocket up to $1,400 a year. And those impulse baby clothes purchases you put on your credit card? Tack another 20 percent onto what the price tag says — that's how much interest charges could cost you unless you pay the bill in full each month.You don't have to go without caffeine, and you can still dress your baby in adorable outfits — just be smart about it. If you can't afford the cafe on the corner, keep a stash of ground espresso at work and make your own pseudo-lattes (microwave ovens do a respectable job of steaming milk). Never leave home without a full, reusable water bottle. Wait for those baby clothes to go on sale, and give yourself a cash limit when you shop.

Pay yourself first
It may seem counterintuitive, but the secret to getting into the savings habit is to put yourself first. That doesn't mean buying every CD or kitchen gadget that catches your eye — it means including yourself among the regular creditors you pay every month.Set some realistic long-term goals and then "pay" yourself by putting money aside in a savings or investment account on a regular basis. If you wait until the end of the month to see what's left over after paying for essentials and shelling out a few more dollars here and there for extras, you (like most people) will probably find that there isn't much left.Don't give yourself a choice. Set up your retirement, emergency savings account, and college fund with automatic monthly transfers — no matter how small— from your paycheck or checking account. Like nightly tooth flossing, regular saving is a healthy habit that accrues over time and becomes a routine you can't live without. And at the end of each month, you'll have the immediate gratification of knowing you socked something away for the future.

Stagger your savings due dates
Most IRAs, college accounts, and other savings options allow you to pick your own date for automatic withdrawals from your checking account or paycheck. Stagger these dates to make sure all the money isn't transferred out of your account on the same day.If you're paid every two weeks, tie one withdrawal to each payday. If you're self-employed and money comes in throughout the month, pick a couple of dates in the middle of the month at a time when you're not paying other bills.

Pay down debt
You've heard it before, but it still may seem hard to believe: Paying off your debt is one of the best ways to save money. That's because the interest you pay on most loans (particularly credit cards) is much higher than the interest you earn with most savings options. So get rid of as much credit card, student loan, auto loan, and other personal debt as you can (a home mortgage loan should be your one big debt), and then start saving.For more on paying off and consolidating debt, see our guide.

Be your own loan officer
When you finish paying off a loan, keep making the monthly payments — to yourself. Put them into a savings account or, better yet, set up an automatic withdrawal for the same amount into a higher-yield investment account.

Motivate yourself with a big-ticket goal
Pinpoint what you really want (a new sofa, a DVD player, a vacation) and what it will cost, then set a realistic goal, such as giving yourself six months to save for it. Cut out pictures that illustrate your goal and put them on your bulletin board at work, on your refrigerator at home, and in your wallet. Every time you think about buying new shoes or towels, ask yourself whether you want or need them as much as what you're saving for.

Open a savings account you can't touch
Save for even bigger purchases, such as the down payment on a house or car, by putting chunks of savings into certificates of deposit (CDs). These accounts offer virtually no risk, they earn higher dividends than plain old savings accounts, and the money must stay in the account for a predetermined period of time — so you can't get at it whenever temptation strikes.

Start a loose change jar

Put a jar — preferably a large one with a narrow mouth, so you can't get your hand into it — in a prominent place, and empty your pocket or wallet change into it at the end of the day. If you can't stand the thought of rolling coins, use the change-counting machines available at some supermarkets when the jar is full. At the end of the year, this found cash can add up to enough money to pay for a weekend getaway, a holiday gift, or a health club membership.

Sock away surprises

Anytime you get an unexpected windfall — a tax rebate, holiday bonus, or cash gift — put it into your savings account. You weren't counting on this money as part of your regular income, so don't spend it as such. Think of this as your Europe or new car account. Or, if you haven't gotten out of debt yet, use it to pay down credit cards and loans or make an extra mortgage payment toward the principal (which reduces the interest you pay over the life of the loan).

Step off the gas
It's pretty obvious that the less you put in your tank, the more you can put in your change jar or savings account. If buying a more fuel-efficient car isn't feasible, figure out how to cut back on your regular driving.Carpool to work or preschool if you don't already. Plan ahead and cluster errands instead of constantly jumping in the car. Walk to your destination or from store to store whenever possible. And for your next vacation, don't overlook the gems in your own backyard — consider exploring your own state instead of driving across a couple of time zones.