A Savvy New Way to Save

Savings is a need. That's right - a need. The reason why is because no one is immune from emergencies. Someone will need to go the emergency room, something essential will break, or someone will call at four in the morning begging for bail money - just when you least expect it.

Wait, in this economy who can afford it? Let me ask you this - how can you not afford it, especially with this super easy way to do it, using money you already have to get somehow. I'm talking about your rent or mortgage money. You can do it, provided you get paid on a biweekly basis.

What? Am I suggesting you don't pay your rent or mortgage? Absolutely not!!! Read on for my suggestion on how to turn your rent money into something that can help shore up your financial future.

1. Open an online account. You are going to do this for a few reasons. You do not want access to this account. Why? Because this is, after all, your housing money. This is not a sudden windfall you can blow at any store of your choosing.

Secondly, online banks will typically offer a higher interest rate then bank and mortar institutions. You will also need to make sure that the account does not have a minimum balance, and you can keep your money liquid. Now you can do the fun part....funding the sucker.

1. This is why you have to get paid biweekly or even weekly for this plan to work. From the first check you receive in the month, transfer half of that to the interest bearing account, plus five dollars.... Why five dollars? Because five dollars can equal what some people spend on one Starbucks trip, so cut out the Starbucks and there you go. Now for the not so fun part....

1. When you get your second check of the month, you have the second half of your housing payment, so transfer what you set aside at the first of the month back to the account you pay your rent or mortgage out of. But wait, you still have five dollars in there, plus the interest your housing payment accrued while it was just sitting there. At first this will not seem like much, but the next month you do this, you'll be left with 10 in your account, plus the interest your money has made.

Let's say as an example you started this in July. If you're like me, your rent or mortgage is due on the first, so after July 1^st, that payment is out of the way. So, lets say you get paid on the 1^st and the 15^th. Let's also say your payment is 500.00. So when you get paid on the 1^st, send that 250 to your account. The 250 will sit there until the 15^th when you get your second payment. Transfer back all but the extra five and - viola - month by month you will see this account grow, and grow.

There's also an added bonus of this for Associated Content producers - you know those months where you get just two dollars in your paypal account? Here's a great place to put those dollars to work, instead of seeing them sucked up into your everyday spending.

Using this account as a tool will give you padding. That way, the next emergency will not catch you off guard. You will be prepared. Welcome to a new dimension of financial freedom.