Savings accounts are among the most traditional and oldest of bank accounts that are used by millions to build up deposits over time.
They can help you reach you’re your short and long-term financial goals. They are also excellent ways to set money aside for the proverbial rainy day.
When you put money in a savings account, your bank pays you some interest on your funds. One of the best and easiest money saving tips is to put away a certain amount of money every month to build a decent nest egg.
Now if you’re ready to grow your savings, consider these tips that can boost your savings and help you reach your goals.
Pay Yourself First
Yes, it may be an age-old cliché, but it still works. Link your savings account to your checking and automatically transfer at least 10% every pay check straight into your savings.
Do this before any other bill is paid. It might feel a bit tough when you first starting out, but within a short time you’ll get used to it, and will indeed, start enjoying it when see your savings growing.
Use “Found Money” To Increase Your Savings
Perhaps you work overtime occasionally or have received an annual bonus from your employer. You may sometimes receive cash gifts on your birthday or other holidays. All these funds, if not used as part of your budget should go to your savings.
If you decide to pay your essentials with cash, you will really see the exact amount of money changing hands. So you’ll easily know how much you’re spending. Then drop the change from all your transactions into a jar when you get back home. Before you know it, you’ll accumulate large amounts of change which you can deposit into your savings account!
Credit Card Round Up
If you must use a credit card, consider those ones with the feature that round up your purchases to the nearest dollar amount. This amount is then automatically deposited into your savings account. If your card offers this neat arrangement, it could make it easier for you to add money to your savings account.
Let The Money in Your Savings Account Rest
If you continue to withdraw money without making deposits, you will not only reduce the amount of money in your savings account, but will also earn little or no interest. So try to leave your savings alone, if you want your balance to grow.
Avoid Impulse Buys
We all indulge in impulse buying at some point. The solution is to apply some discipline and learn to hold back. When you feel that urge to buy, see if you can give yourself some cooling off period. If you still feel that you must buy this time, go ahead and spend your money. If you’ve thought it over and feel that you don’t need it, then it’s best to deposit this money into your savings account.
Put Banking Technology To Work
If you feel you’re struggling to grow your savings account, you can benefit from the personal advisor in your pocket.
Today’s technology can provide you so many benefits if you want to save money. Smartphones are used to do more than just stay in touch with family and friends. Set up account alerts, and receive text messages on your email or phone. Rather than wait for a month to see your statement, you can use these alerts to give you real time updates on how your savings account is doing. It can also give you warning when your balance dips below a certain threshold.
While there’s no need to implement all of these tips at once, you should now have a better idea of the ways that can help you add to savings and grow your deposits.
I bet you have other tips to our readers on how to grow their savings account. Please, add them in the comments box below.