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Saving money is not something every American likes to think about but it’s something the most prudent and prepared consumers know they must do. Saving money doesn’t have to be some sort of exercise in torture. In fact, it really comes down to the golden rule of savings: Pay yourself first. Adopt this approach to money and the rest will fall into place. Following are tips on how to start building an emergency savings account today.

The golden rule of savings is one that should be taught to even the youngest child. Learning to pay yourself first from an allowance or part-time job helps young people reach goals of purchasing items they want the most, such as a computer, car, or college.
Learning that rule early serves them well later in life as they continue to pay themselves first each time pay day rolls around for the unforeseen emergencies we all face in life. One of the most effective ways to make savings easier is to set up an autopilot savings account. Having money deducted from a paycheck and directed to a special account before it reaches a checking account is easiest way to begin saving.

Paying off debt is another key to reaching savings goals. Items such as monthly car and credit card payments can create a real strain on finances. Once those debts are paid off, that money can be redirected to an emergency savings account. Having lived without that money makes it easier to put it away - only now you’re paying yourself, not a creditor. And once in place, an emergency savings account can be tremendously helpful in keeping out of debt down the road.

It’s never a good idea to cut spending on entertainment altogether. Be realistic in savings by also setting monies aside for the fun things in life, such as eating out, movies, and other entertainment. In fact, savings plans are more likely to be successful if money is also budgeted for fun, but keep in mind that once that money is spent, you don’t have permission to spend more.

Finding the greatest yield for your savings will also help to build wealth. Putting sizable amounts of money into high-interest savings accounts is a much better idea than leaving it in no- or low-interest checking accounts where it won’t grow. Consider money market accounts, certificate of deposits (CDs), an IRA, or other similar opportunities for growing money.

Impulse buys are one of the most effective ways to threaten a savings plan. “In the moment” purchases usually leave the consumer feeling discouraged the next morning when he or she realizes the item is not something really needed - or better yet - is an item that should have been saved for. Consumers who enforce the 24-hour rule on impulse buys provide themselves with time to think carefully before potentially wasting money. Another tactic for combating impulse spending is to leave credit and debit cards at home. Surveys conducted on spending show that consumers spend 12 percent to 50 percent more when using credit than cash.

Investing “found money” into an emergency savings plan is another easy way to build wealth. Items such as a tax refund, bonus, rebate money, or overtime pay represent unexpected money that needn’t be missed. And it won’t be missed when you place it into a high-yield savings account or an IRA where it can’t be easily spent.

An emergency savings plan is meant for just that - an emergency. Treating a savings account as such is important to prevent dipping into the money for purchases rather than saving the funds for a rainy day. Loss of a job, replacing a vehicle, or an extended illness are times when the emergency fund should be used. Vacations, entertainment, or clothes do not qualify as emergencies. Those items should also be included in a budget so that the savings is safe and available when it will be most needed.

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