Last week we talked about the variety of accounts that will safely store (and potentially grow) your hard-earned savings: traditional savings, money markets, Christmas clubs, individual retirement accounts (IRAs) and certificates of deposit (CDs).
Most of these accounts are available at any financial institution. All you have to do is open the account and deposit your funds. It's easy!
Where will those funds come from?
How do you develop the discipline to actually deposit those funds into your account...and then keep it there?
The struggle is real, my friends. Opening and having an account may be easy, but actually saving money can be downright challenging. The rule-of-thumb for saving "for a rainy day" is to have three to six months of living expenses on hand, just in case.
Wonder how much you should--or could--be saving? Try this calculator to find out!
So how do you make that happen?
Luckily, our friends at the American Bankers Association have a few tips to make saving money an achievable goal:
- Pay yourself first. If you wait to see what's left over, you are less likely to save. Determine in advance how much money you plan to deposit each month. If you receive a raise, increase the amount of money deposited into your savings account.
- Take advantage of bank technology. Consider automatic payroll deductions or automatic transfer from checking to savings. Arrange to have a specific amount transferred to your savings account every pay period. Bank Independent's complimentary Smart Swipe program will automatically round up your debit card purchases and transfer those funds into your savings account every night. Easy peasy!
- Pay your bills on time and pay more than the minimum amount. Setting up automatic payments will ensure you never pay late fees. It's technically not money that you can put in the bank, but it's money that you don't have to spend, so it's really the same thing!
- Determine needs versus wants. Do you need to eat out every day for lunch? Do you need that gourmet cup of coffee in the morning? By bringing your lunch to work a couple days a week, you can save hundreds of dollars a year.
- Shop around -- whether it be for credit cards, bank accounts, or mortgages. There are thousands of financial services products out there, so make sure you pick the right one for you. Your Personal Banker can help you identify which products and services best suit your needs.
Ready to start saving today? You can open a Bank Independent savings account right here, right now! Just click the button below to get started.