Savings. The dreaded term for millions of Americans. Trying to build your savings shouldn’t be dreaded, it should be something that's celebrated!
From childhood, we are urged to save our birthday money, Christmas money, allowance, etc.
Sadly thought, those habits often don’t carry across into adulthood. Many Americans don’t have a savings account, let alone a retirement account (but that’s a whole other post).
If you haven’t started a savings account, go start one! Depending on the account, you can get started with just $5.00.
If you are struggling to build your savings, here are some great ideas to help build your savings account starting today!
Save a Flat Amount Per Paycheck
If you haven’t already set up a budget, you should. In that budget, set a flat amount that comes out of your paycheck and into savings. You can do this manually or make it an automatic deposit. If you don’t have it in your budget, then you won’t want to save it.
Set a Savings Goal
It’s hard to achieve anything without an end in sight. You might be saving for a car, a laptop, or a down payment on a house. Your goal can be just to save a certain amount per paycheck, or to save an amount each year. Setting realistic achievable goals can build your savings faster than you think.
Try a Savings Challenge
For example, you could try the 52 week savings challenge. This is where you save $1 the first week, $2 the second week, ending with $52 the last week. By the end of the year you will have saved $1,378! There are numerous other challenges, like a penny a day for 365 days or a $1 a day for 365 days. They are fun and a great way to challenge yourself and your family to see who can save the most!
Set Up a “Keep the Change” Transfer
This program is one that's offered at most banks, although it may have a different name. Every time you use your debit card, it rolls the change into your savings account automatically. It may not amount to much, but an extra $5-10/month is still a good way to build your savings. Check your online bank account to turn it on or ask your bank teller.
Check Out Digit
Digit is an online savings account that draws directly from your bank account. It recognizes your spending habits and moves money over according to what you can afford that month. Digit is free and you are guaranteed to never over-draft your account. It’s a great way to build your savings without you having to think about it.
Switch to an Online Only Bank
For example, some strictly online banks, like CapitalOne360, have higher interest rates than a physical bank. If you put some money into a savings account or other fund, you will see more interest growing in your favor. It may not grow fast, but it still adds up over time.
Having a savings account is a critical for good financial health. Without a savings account, one can fall into debt faster and have it add up quick.
Can you think of other ways to build your savings?