With the with cost of living continuing to rise, saving money seems daunting. However, it’s possible to set aside funds for a rainy day and reduce your overall stress, especially in times of financial need. In honor of National Savings Day, here are some tips to improve financial well-being and start saving now.
Save with a savings account
If you don’t have a savings account, consider opening one. Many banks offer free accounts with no minimum balance or annual fees. You’ll need somewhere safe to stash your money. Savings accounts are harder to access than a wad of cash under you bed, so you won’t be as tempted to use the money. Plus, the funds in your savings account will earn interest.
There are different types of savings accounts, so be sure to do your research and choose the best one for you.
Save loose change
It may not seem like a lot, but your spare change can add up. America Saves, a campaign run by nonprofit organization Consumer Federation of America that encourages households to save money, suggests having a dedicated place in your home where you and your family members put spare change. You can even add extra singles when you find them. Continue adding money until the container is full, then deposit it in your savings account.
Save automatically
If your employer offers direct deposit, take advantage of it. Not only will you eliminate the chances of losing or damaging your paycheck before you can deposit it, but you’ll also have access to your funds right away. Plus, since most employers let you divide your paycheck into different accounts, it’s easy to put part of your pay into a savings account. If you don’t see the money, chances are you won’t miss it.
Also, some banks offer a Christmas Club or other special savings account. As the name implies, it’s to help pay for holiday expenses, but you can use it for anything. You designate a certain amount to be deducted from your savings or checking account to go to your Christmas Club account each month. Even though there’s no interest, it’s a good opportunity to set it and forget it. Before the holidays, the money you saved will be deposited into your account.
Save any extra money
When you get your tax return refund or some birthday cash, it’s tempting spend it right away. However, if you save even a portion of it, you’re surely appreciate it in the future. Or, if you sell things around the house or have a garage sale, save that money instead of buying something to replace it. Over time, your deposits will add up.
