When it comes to saving money, knowing how to start is the hardest part. Do I cut back on fast food? Trips to the movies? Shopping for clothes? Or even beer?!? We all know that having a savings account is important, especially in times of emergency. But how do we go about building our savings account?
The first step is self-explanatory, just set up a savings account. Seems easy right? Well, that’s not always the case. Start by looking for an account that charges minimal fees, no minimal balance, and if you’re lucky, a decent starting interest rate. The key is to get your savings account lined up with other existing accounts that you may have in order to make money transfer as easy as a snap of your fingers.
After you have found an account that fits your needs, the next step is to start building it. Simple ways would be to have your paychecks set up to directly deposit a percentage of that amount into your savings account each time you receive a paycheck. This is a simple way for anyone to slowly build up savings while continuing to use the other percentage of your paycheck for life’s necessities. Remember not to get discouraged if you don’t see your savings account increase right away. It takes time, just like trying to potty train a puppy. There will be frustration at first, but eventually it will stop peeing all over your bedroom! And don’t worry, you’re savings account won’t pee all over your bedroom but it does need time and patience to grow.
Starting by depositing small amounts is important to build a habit of putting some money to the side. Small amounts do add up and you will be surprised how much more you can end up with in savings just by depositing 10% of your paycheck into savings each time! Or maybe even consider putting some money that you were going to go spend at the candy store or shoe outlet into your savings account a little at a time. Staying on track is just as important with savings as with any other lifestyle change. Some loan companies will also help build your savings, specifically through installment loans, by depositing a set percentage of your loan amount into an account if paid off in full and on time.
There are many ways to start saving more money, even if it means taking baby steps. Building up your savings is very important to ensure financial stability later in life along with being able to handle emergency situations that may arise. You don’t want to get stuck in the whirlwinds of financial struggles with no savings that lead to continual loans that you can’t pay off. You also don’t want to be stuck with a poor credit score from a lack of savings that might cause poor payment history. So start today! Build up that savings account! Strive for small goals each week and work to make your financial situation better than it was before! Stay Wise!
We are not financial advisors and therefor are not giving any financial advise. Before implementing any of the tips on this website, please consult with a financial planner to ensure it makes sense for your individual financial situation.