How I did it: I decided to have a separate savings account where I was saving for nothing in particular.  I just called it my "squirrel" account (like squirrels putting away acorns).  It is separate from my insurance account, my indulgence account, my tuition account, etc.  I set a goal and started transferring amounts in there, little by little, anywhere from $35 to $200.  Often, though, my big transfers were made up of several small transfers into a local fund, and then transferring a couple hundred once it accumulated.

Lessons & tips: Transfer, transfer, transfer.  Get that money OUT of your account.  However, don't drain yourself...you'll only sabotage your efforts.  Often I would transfer out whatever was left before I got my new paycheck.  As I said before, I transferred into a local account, and then when I had a few hundred, I would transfer out only half or so.  Having a local account with $5 in it only means you'll have to take it out of your true savings account when you are in a pinch.  So I had "in a pinch" savings in one place, and my true "squirreled away" savings in another place.    

Resources: INGdirect.com is where I store my money, because I can make separate accounts and transfer them easily.  They used to have a good interest rate, as well.

Nov 27, 2009, 12:30PM PST | 0 comments | 6 cheers