We are all in the same boat when it comes to our finances as of late. Even large companies like Wal-mart are strapped for cash and some others are going under.  This recession is proof that we never know what will happen tomorrow.  Being ready for the future is a major part of life, but most forget the number one way to prepare.  Saving a little of our monthly income is the best way to cushion ourselves for financial setbacks.

For many of us, saving is not simply depositing the money and forgetting about it.  We will dip into our accounts, skip on making deposits, and stray away from our budgets (If we have one to begin with).  This always hurt us financially in the future, but there is good news.  There are simple solution for these problems that you can implement with a few phone calls and a little paper work.

Direct deposit is a great way to help prevent unwarranted spending. Study shows that people are less likely to spend money if they have cash VS credit cards or debit cards. As the saying goes “Out of site out of mind”.  Another great resource we have at our disposal is automatic bill pay, which we can set up to pay recurring bills every month.  This is a valuable tool that most do not utilize or simply just don’t know about, ask your bank account manager to help you with the details.  Most bank offer this service free of charge.

Time Deposit Accounts (CD’s) are one of the best type of saving accounts for people that have problems saving.  The minimum amount for these accounts are higher than regular saving accounts, usually $1,000 , but if you look around you can find some that require a smaller deposit.  IRA CD’s are great for those looking to starting a retirement fund.  Make sure you do some research and find the best IRA CD rates available to you.

There are two great features that make CD’s a must for everyone…
1) You will have to leave your money in the account for a set period of time before you can make withdrawals without incurring a fee.
2) The interest rate on CD’s are usually much higher than normal savings accounts, this is a great way to make your money work for you. You will earn money just because you have money, if this is not motivation then I don’t know what is.

Now, if you Have direct deposit and automatic bill pay setup to put a small amount into your CD’s every month, you will not have to deal with it manually and are more likely to forget that you’r saving. This is a very powerful way to prepare financially for an uncertain future.  Money management is an important part of life and should be taken seriously, so take the steps and get started on the right track.