It is suggested that, as adults, people should have at least a year’s worth of income in savings. That number is probably somewhat mind-boggling for most! It would be easier if it were socially acceptable to carry your piggy bank around to friends and family and sweetly ask for spare change (an action actually found cute if you are a smiling three year old), but that it not the case! Here are some tips to help you save money the adult way.
Debit card round up. Most banks have a round up feature that will automatically round any debit card purchase up to the nearest dollar and put the extra in a savings account. For example, if you spend $13.51 at the grocery store, the bank will charge your account $14.00, paying the grocery store $13.51 and depositing $.49 into your savings account. This makes balancing your checkbook simpler (whole numbers!) and you save without even realizing it!
Direct deposit. Set up a separate account and automatically have a set amount directly deposited into it on payday. Everyone has good intentions of making that deposit, but if it is done automatically, you do not have to worry about it.
Use a different bank. Out of sight, out of mind. Open an account at a different bank than the one you normally use, with an online bank or with an investment company. In conjunction with aforementioned direct deposit, this money will not be as easily accessed as money in your normal bank.
Transfer capabilities. Most banks offer customized online banking, so if your savings account is at the same bank as your checking, remove transfer capabilities from savings to checking. It is much too easy to access funds and transferring money will not help you save. Leave the capability of transferring from checking to savings, as it never hurts to do that!
Multiple accounts. You are not limited to just one savings account. Open them up for anything you may need… Christmas, emergency auto repairs, children, education, etc. You will not feel bad for taking money out to fix a flat tire if that is what the account is for! With multiple accounts you leave your main savings alone yet have the money without breaking your checking account.
For more great tips, click here. Remember, small drops fill the bucket… so don’t expect to get a cushy savings account overnight. Start small and watch it grow!