Even though you might already have a savings account, that doesn’t necessarily mean you do a solid job of contributing to it. Like local insurance agents can most certainly attest, you never know when a disaster will strike, but if one does, you’ll most certainly be glad to have a robust savings account you can tap to help dig you out of an unexpected financial hole. Learn a few tips for increasing your savings as well as your peace of mind.
Make It Automatic
You can make contributing to your savings account much easier by automating the process. Every time you get paid, set it so that a specific portion of your paycheck goes into your savings account. That way, you neither have to worry about remembering or forgetting to do it yourself. What works so great about automated savings is that if you never actually see that money in your main checking account, you aren’t really missing it.
Create a Solid Budget
If you don’t yet have a budget, now is a great time to sit down and map one out for yourself. If you do have a budget, now is a good time to look over it to ensure it’s working for you as well as you hope it is. As you’re looking things over, see if there’s any money from your income you can set aside for savings without sacrificing your other bills or financial obligations. For instance, perhaps you can cook at home more or make your own coffee rather than go to a coffee shop.
Set a Goal
Do you have a specific intention for your savings account, such as going on vacation, buying a new car or putting down a down payment for a house? If so, set a goal for yourself so you have a target to aim for. Another great thing about setting a savings goal is doing so is a great way to learn some discipline, a lesson that’s sure to remain with you for many years to come.
Open the Account With a Different Bank
No one knows your money habits better than you, and maybe one of your worse habits is to dig into your savings account every now and then to cover impulse buys. While this is okay every now and then, you most certainly want your deposits to outnumber your withdrawals. To better resist the temptation to siphon money out of your savings account, one good idea is to open the account with a separate bank. Banks that charge a fee for transferring funds between accounts is an even better idea since you’re more likely to rethink that transfer if you know there’s a price tag attached to it.
Think About Your Savings in the Long-Term
There are several reasons to put money back into a savings account, but to keep from struggling in your retirement years, and to keep from paying off your student loans for the rest of your life, you’ll want to look at saving money as a long-term goal rather than a short-term one. You might have an emergency fund as well as a retirement fund, but there’s nothing wrong with having yet another savings account for your money. This is because you have to think about the fact that if you only have an emergency fund and no other type of savings account, if an emergency does befall you, it could wipe out every penny you have in that account, leaving you without a financial safety net.
While it’s nice to not have to struggle financially today, it’s even better to not have to struggle financially tomorrow. Bulk up your savings account so you always know you have an out during times of monetary strife.
