Do you find that you have more "month" than money between paychecks? Do you feel that saving even $50.00 a month is just not possible? Or that someday owning your own business, or buying a home is never going to happen?
If so, you need to look into a program that actually "pays" you to save money! It is called an Individual Development Account (IDA) and it is a matched savings account that helps low-income people save, build assets and become part of the financial "mainstream".
Assets are not income. Assets can be tangible (stocks, land, savings) or intangible (education, job training, skills and access to credit).
If you are saving "for something" (an asset) -- your first home, a college education or starting your own business, you can open an IDA. The funds are matched through a variety of sources, usually a federal program called the "Assets for Independence" program, which is run by the U.S. Department of Health and Human Services (HHS). Your state may also have a matching funds program, and some are also privately funded through grants by private foundations.
What does this mean to you? It means that for every dollar you save, YOU GET ANOTHER DOLLAR -- FREE.
Where else can you get that kind of return on your investment??? You can literally double your money with no effort!
Opening an IDA can be especially helpful if you want to start your own business. Not only does an IDA allow you to start your business without going into debt, but it can be used as equity, to leverage a larger loan for start-up capital.
Many microenterprise development organizations now offer both microloans and IDA services, and often having an IDA will help you to get what is called "step-up funding." For example, with some microenterprise programs, if you've got $500 saved in your IDA, you're eligible for a $1000 microenterprise loan...which can be really helpful if you have bad credit or no credit! Other programs may require that you put money into your IDA for six months before you can access a loan, but then you're given a loan with a longer repayment plan.
To find out if there is an IDA program near you, go here:
http://idanetwork.cfed.org/2003idasurvey/survey_search.php
Cheryl Antier is a former VISTA (Volunteers In Service To America) Volunteer, and is the President and CEO of Dream Weaver Enterprises, a business and fundraising consultancy firm that helps nonprofit organizations and small business owners. Her Website offers free articles, information and resources for anyone who needs to find funding so they can "weave their dreams into reality." Sign up for a free newsletter and let us do all the grant research for you each month: http://www.microenterprisesuccess.com
Cheryl Antier
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