Posted by Jaymie Tarshis on 10:51 AM with No comments
Opening up a savings account is the first step to efficient money management. Though there will be some hurdles to climb along the way, the road to financial stability does not have to be a long one. Here are five ways to build your savings account and create a future of monetary success:
WHAT WHAT YOU SPEND AND START SPENDING LESS
The first step to saving is by spending less money. The easiest way to do this is to track your expenses. There are many free apps you can download such as Mint, which automatically updates your spending and transactions without any user input required, or this website provides a free tool to help you budget for rent, bills, food, gas, and extra money to put into savings.
Often times you will begin to notice the unnecessary small purchases that can add up quick. Try to make small changes by eliminating your daily gas station runs and making an effort to eat in more. Cutting down on costs in the short run end up making a big difference in the long scheme of things.
The biggest thing to remember to is hold yourself accountable. The biggest barrier is to not make it a habit of saving instead of spending.
DON'T MAKE SAVING JUST AN OPTION
The easiest way to create a new habit is to make it automatic. Automatically depositing a portion of your paycheck into a savings account or arranging monthly transfers from a checking account is the easiest way to get into a routine that adds to your account balance. This way, you don't even need to hold yourself accountable. The money will always end up exactly where it needs to be.
AVOID UNNECESSARY WITHDRAWALS
Only withdraw money as you need it. The more money you withdraw, the less likely of a chance it has to end up back in the bank account.
The good thing is most savings accounts these days have a maximum number of withdrawals to be used in a period of time, usually around no more than six in a month. After this point, the bank will usually impose excessive withdrawal fees.
CLOSELY MONITOR YOUR BALANCE
It's important to monitor the balance in your bank account as most banks these days charge high fees if your account balance dips below the minimum requirement. This also applies when your bank account goes into the negative. The best way to avoid this is to keep a close eye on your balance and for any pending charges that may not have been processed through yet.
Technology is greatly improving this issue. Most American's now have the ability to check their bank activity by logging in through a mobile app or even texting their bank for account balance information. Checking the balance in your bank account can be easily done once a day and can keep you from paying a lot in fees.
Saving money and creating financial stability is something that can be attained by anyone. With a little practice and a conscious effort, the road to building a savings account does not have to be far ahead.
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