Everyone wishes they had more money in their savings, but few know how to get more in there besides adding cash whenever they think about it. But what if you could make the process easier on yourself?
Here are nine helpful tips to build a better savings account.
1. Pay Yourself First
The concept of paying yourself first has been used by savvy savers forever. It means that before you spend any money on other budget wants and potentially even some needs, you’re setting aside a certain amount for savings, even if it isn’t much.
2. Use Digital Money-Saving Apps
Many money-saving apps have built-in features that teach savings techniques or provide other financial resources to help you achieve your goals. Your bank might even have these apps or resources built into apps that could already be on your phone.
3. Try a Spending and Saving Challenge
If you’re struggling to save, maybe try gamifying your savings or spending to challenge yourself. Saving and spending challenges are a fun and unique way to trick yourself into paying more attention to your finances. Doing enough of them will make saving money second nature to you!
4. Break Habits and Put the Money Toward Savings
Are there costly habits you’ve always wanted to kick? Putting whatever money you’d spend on them into your savings can help you eliminate these habits and work toward a healthier financial future. It’s not an easy road, but certainly one worth embarking upon if you want to get serious about saving money.
5. Rebalance Your Budget
Often, you’re having a hard time saving because you can’t find money in your budget. That likely means you need to make a few adjustments. You could probably swap that morning latte for a black coffee and save yourself an extra $20 a month; even something that small can make a big difference.
6. Set Up Auto Withdrawals
Automate your savings by having your bank take money right from your paycheck on payday. If you aren’t already doing this, you probably often forget about savings or struggle to keep up with the savings you want to hold yourself accountable for.
7. Pay Off Debt First
Saving will always be difficult if you’re still dealing with credit card debt. Before you even bother with building your savings, pay off your debt. Then, you’ll automatically have more cash to set aside for future plans once you’re ready to save in earnest.
8. Write Down Your Goals
Establish your savings goals to make building your savings more realistic. Once you know why you’re saving, it becomes significantly more straightforward to actually do it. Keep it somewhere you can see it and remind yourself daily!
9. Have Separate Savings Accounts
Having more than one savings account can help keep your finances more organized. For example, you might have one savings account for general savings and another for emergencies. This way, you can also save in accounts with unique interest rates that are more suitable for short-term and long-term goals.
