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If your savings account is hovering at or below a $1,000, you’re not alone.  According to the 2017 GOBankingRates survey, more than half of Americans (57%) have less than a $1000 in their savings account.  In fact, a whopping 39% report not having a savings account at all.  How can this be?  Most of us as children were encouraged to save for a rainy day.  We know instinctively that life is better with a surplus of funds at our disposal.  Yet many people seem determined to live on the edge.  Many individuals live from paycheck to paycheck.  How do you protect your family and maintain what I call the four walls? (Food, Transportation, Clothing, and Shelter)

No matter what your income level you must find a way to save a percentage of it monthly.  If you need to cut back on your expenses, do it.  Saving money must become non-negotiable.  There are many ways to reduce your expenses such as cutting back on eating out, reduce dry cleaning, and bringing your lunch to work to name a few.  You must make saving automatic.  Pick up a copy of David Bach’s book, “The Automatic Millionaire”.  His book shows you step by step how to automate your personal finances.

Every success begins with a first step.  You must learn the discipline of being patient, consistent, and never giving up.  There are two valuable components to increasing your savings.  The first component is time, the more time you give yourself the more you will accumulate.  The second component is Compound Interest, when you put money into a savings account it earns interest, and in addition, the interest you earned earns interest as well.  Every time you spend money on something you don’t really need, you’re losing money.  Most people can’t afford to lose money!