3 Creative Ways to Build Savings
October 20, 2021The savings account is such a simple tool that we often forget it’s value. It cushions the blow during emergencies, provides security when tomorrow is uncertain, and holds those precious, hard-earned dollars while you work towards a big purchase. Building up that savings nest egg is the tricky part. Let’s look at 3 ways you can put money away while barely noticing it’s gone.
Set up an auto transfer as soon as your payroll comes in
Don’t wait to manually transfer money to savings after your payroll deposit comes in. Schedules get busy, life gets in the way, and the next thing you know your transfer gets missed…and so do those dollars in savings. Most online banking providers (including ours) allow you to set up a recurring automatic transfer. If you get paid on a regular schedule, set that transfer to go the morning your paycheck hits your account! Even a small amount put away regularly will add up over time.
Got a raise? Add it to savings!
Imagine this: your hard work is paying off, and that raise is set to show up on the next paycheck. Do you naturally start picturing what you’ll do with that extra cash? If you do, you’re not alone. Let’s propose another option… You’re already used to living on your current wage. If you put that little bit extra you got for your raise into savings, you won’t even notice it’s gone, and you get to watch that balance climb.
Set a “money mindfulness” rule
Sit down and look at your purchases over the last few months. What recurring purchase do you make that you really don’t need, but you still justify regularly? That’s what you build your money mindfulness rule around. Coffee is an easy example for this. If you’re someone who grabs a latte most days of the week, try setting a “rule” that every time you buy a latte, you put an amount equal to the cost into your savings account. This does two things – it forces you to process the cost of the latte and decide if it’s really worth it, AND it shows you how much your savings could grow if that amount was put away instead.There are a whole slew of creative ways to save a little at a time. These are only a few options to get you started. If you ever decide you want someone to help you along the way, we have many experts at the bank who would be happy to talk with you.
There are a whole slew of creative ways to save a little at a time. These are only a few options to get you started. If you ever decide you want someone to help you along the way, we have many experts at the bank who would be happy to talk with you.