According to a June 2014 survey conducted by Bankrate.com, 75% of Americans have no savings and live paycheck to paycheck! Are you one of these?
There are many different reasons why a person wants to start or already has a savings account. Savings accounts are used when someone is saving for something special (trip, car, house, etc), saving for your future retirement, building up an emergency fund and many other reasons.
Whether you are just starting to build your savings account, or have been putting away money into a savings account for years, there are lots of great way to help you grow your savings account and reach your savings goals. Below are just some of these ways.
4 Ways to Grow Your Savings Account
- Pay yourself (and your savings account)
After you get paid, and you sit down to pay your bills, be sure to “pay” your savings account. This payment should be at the top of your list when paying bills out of your paycheck each month. This is the only way to ensure you continue to build up your savings account balance.
In many cases you can direct deposit a portion of your paycheck into a separate account for your savings. Many people find that if the money doesn’t go into their checking account to begin with, the chances of it getting spent on something else are a lot less.
2. Think Twice or Just Say No
When you have a situation where you are considering taking money out of your savings account to pay for an unplanned expense, think twice, or even more than twice about what that decision means to your savings goals.
It can be so easy to just transfer that money out, but in order to successfully build your savings account, your deposits have to happen more often than your withdrawals. Just say no more often than you say yes to those spontaneous transfers.
3. Use Technology
Sign up for account alerts that keep you in touch with your savings balance and also can alert you if the balance drops below a certain amount.
Also, apps like Digit actually transfer small amounts from your checking account to your savings in a way that you don’t miss it after it’s gone. I love it!
While some people are saving for a short term goal, like buying a new car or a house, you also need to be thinking long term. Saving for your retirement is a huge undertaking and can take a very long time to accomplish these kinds of huge financial goals.
Consider saving for your emergency fund or for short term goals at the same time you are saving for your retirement. They both should be happening at the same time to accomplish all of the goals you have planned for your overall financial situation.
So whether you are saving for a new car or saving for retirement, or any other savings goal, be sure to take into consideration these tips to help you continue to build and grow your savings account balance. Financial goals can be overwhelming, but with a little planning and self-discipline, your financial dreams can become a reality.