Contributed by Christie S.


I keep finding myself in the same situation each year. I pay down my debt on my credit cards aggressively because I just don’t like the stress of owing money. However, the same thing keeps happening. If some sort of emergency occurs such as my car needing repairs or my cat getting sick or (most recently) needing to incur unexpected costs due to Hurricane Sandy, I have no reserve and my charge card makes an appearance. This year I decided that I needed to do something about it and set up a regular savings plan.

A financial advisor friend of mine suggests to his clients that they set up an automatic savings plan with their employer. When you deposit money automatically, you don’t even notice that you have less coming in. I think this is a great idea but, since I work freelance, I needed to come up with my own automatic savings plan. Here’s what I came up with: I will take the retainer I receive from a steady client and earmark it as my monthly savings deposit.

What are your tips for building up a savings reserve?  We invite you to share your comments in the box below.