Putting money away for savings can be very difficult to achieve, especially when unexpected emergencies arise. It is important to understand that any kind of savings is better than no savings at all. With that being said, here are some tips to help you start saving today!
1. Open a savings account
This might sound like an easy task, but many people actually never open a savings account when they open their checking account. A savings account is the best place to begin saving. You can choose to add money to your savings account every month, transfer money from your checking to savings, or even allocate a percentage of your direct deposited paycheck to be placed into your savings. Savings account will earn interest, as long as you keep money in that account. Be careful if you have to transfer money from your savings to checking because your savings account could be closed by your banking institution, especially if it sits with a $0 balance for several months.
2. Start collecting your coins
This is an old way of saving money, but can definitely add up. Some people do not feel comfortable keeping a large amount of money at home. If you decide collecting change or single dollar bills should be better placed at a bank, then begin saving at home until you reach a certain amount of money, (say $50), and deposit into a savings account. We never realize how much change you can receive when shopping and spending cash. Again, this is a slow and steady way of developing a savings, but can yield great results.
3. Deposit any earned cash right away
Did you win money on a lottery ticket, get cash for a birthday, or earn tips at your job? Deposit this money into savings right away so you do not feel tempted to spend it. Holding on to cash will make you want to spend it more than if it was tucked away in a checking or savings account. Avoid spending the money on an impulse purchase and deposit it right away.
4. Start saving when you are young
Of course if you are older now this is probably not the best advice, but can be something you pass down to a child or younger family member. When you start saving at a young age, it simply becomes a habit, and a good one that will remain with you for a lifetime. Imagine saving that $50 you got from grandma for your birthday every year until you were 18. That savings comes close to $1000. It is the little things that can make a huge difference when it comes to building your savings.
5. Put away a portion of your paycheck
Whether you get a paycheck every week, two weeks, or month make sure to set a portion aside for savings. If you think you do not make enough money to save, think again. Even setting aside a small portion each month can help start a savings.
Getting started saving doesn’t have to be hard. The sooner you begin a savings technique that works best for you, the sooner you will be on your way to making better financial choices for your future.