It’s America Saves Week! This week is dedicated to bringing organizations together from around the country to encourage Americans to save effectively and efficiently. In honor of this week, we’ll be discussing savings accounts and how you can make them work for you.
Especially if you have a family, finding extra dollars to save here and there can be a big challenge; but doing all you can to save money now can mean less headaches and financial burdens in the future.
Why Start a Savings Account?
While your reasons for starting a savings account will be unique to your family, most people begin savings accounts to begin building wealth for the future. Many also use a savings account as a place to hold emergency funds. We all know life can hit us with the unexpected, and having money ready for such an occasion can help take a load off of your mind. It’s recommended to keep roughly 3 months worth of income in a savings account in case of emergencies.
Tips to Save
1. Budget - The first step to saving is budgeting. It’s not fun, but it gives you a complete picture of your finances so you can find ways to cut costs. Look for things you can live without like cable, expensive coffees, or going out to eat. Don’t be too strict on yourself; even a small start is a good start. Put any extra money you find into your savings account.
2. Set Goals - Setting goals for your savings account is a great way to hold yourself accountable and encourage yourself to set money aside. Whether its a vacation or reducing debt, goals are important for wise saving.
3. Automatic Transfers - With online banking, it’s easier than ever to set automatic deposits into your savings account directly from your checks. This way, you don’t have to remember to transfer funds yourself, and your savings will grow quickly!
4. Refunds and Raises - Any extra income you receive from a tax refund or bonus at work can go directly into savings. Since it’s extra money to begin with, these are a great way to build your savings without dipping into your regular income.
Learn more about saving money, boosting credit, and making the most of your taxes on our blog.
Have you heard about Money School? On April 14th, we'll be offering free classes and workshops to teach you everything you need to know about managing your finances both now and for the future. Learn more here.