Money-saving tips to grow your bank account
There are a number of money-savings tips and techniques you can use to grow the balance in your bank accounts. These are applicable to various types of accounts you may have, whether savings or current.
However, savings accounts are among the oldest and most traditional of all bank accounts, and they can help you reach short and long-term savings goals. When you put your money in a savings account, the bank will typically pay you interest on your funds. One of the most sensible money saving tips you can follow is to put away a certain amount of money each month to build up your nest egg.
If you are ready to grow your savings, you need to consider these money saving tips that may help you reach your goal, according to www.ally.com:
Make regular deposits
If you use direct deposit to have your paycheque deposited into your current account, see if your employer will allow you to split the deposit between current and savings. In most instances, you can designate a fixed amount or percentage of your paycheque for your savings. Once established, the process is automatic. You no longer have to remember to make the transfer and you’re not as tempted to spend the money. In some banks, you can also automatically transfer funds from your current to savings account.
Pay yourself first
Make savings account deposits a line item in your budget, along with any other money saving tips you use to reduce costs and grow your savings. Treat your savings account deposits just like any other bill that you must pay. The only difference is that you are paying yourself instead of a creditor. On the due date, transfer the money from your current to your savings account.
Use ‘found money’ to increase your savings
Perhaps you receive an annual bonus from your employer or work overtime occasionally. You may receive cash gifts for your birthday or other holidays. These funds, if not used as part of your normal budget, can help you grow your savings more quickly.
As you pay off debt, continue budgeting as if the debt were still in effect, but place the payment amount in savings
For example, if you pay off your car, put the amount of the car payment in savings each month. If you like, consider this as pre-payment for your next vehicle. When the time comes to replace your current auto, your savings account should be sufficient to make a substantial down payment if not pay for the vehicle completely, which saves you even more money in interest you don’t have to pay down the line.
Let the money in your savings account rest
Withdrawing funds without making new deposits means you will earn little or no interest. Try to leave your savings alone if you want to watch your balance grow.
Some banks offer some of the most competitive rates in the country. You can open and fund an account with any amount.
Give yourself regular check-ups
Having a healthy savings account is just like maintaining your physical health.
You need that regular scorecard that keeps track of your spending and helps you reconcile that to your net pay. That’s how you’ll really determine if you’re living within your means. You’ve got to hold yourself accountable. If you overspend one month, that impacts your progress towards your goal. The accountability factor forces you to find a way to correct yourself if you’re going off course.