If adding to your rainy day fund was placed squarely at the top of your financial to-do list, you are in good company. According to a GOBankingRates survey, nearly 69% of all Americans have a dismal savings account balance, meaning $1,000 or less. When faced with a financial emergency that requires quick affordable cash on hand, you do have options available to you, such as this auto title loan service in Los Angeles. However, even a grand or two may not be enough to get you through until the next payday. Building up savings is an admirable goal, but it can be difficult to know the best route to take to boost your savings power this year. Don’t worry; the savings tips below will help you build a savings account you can be proud of.
Get on the Tech Train
Technology can be your best friend when you’re attempting to reach a financial goal. Several mobile and desktop apps exist that put you in the driver’s seat of your saving, and spending. Budget apps like Mint offer easy methods for analyzing your daily and monthly buying habits and suggest how you might curtail your spending so that you have more to save. Automated savings apps like Digit and Qapital put saving in the forefront of your mind through behind-the-scenes transfers and savings rules based on your tendencies and budget. One or a combination of these digital tools can street you in the right direction while you work to increase your savings account balance this year.
Seek out a Higher Yield
A simple method to boost a savings account balance is to give your money a chance to work harder for you. This can be done by transitioning some or all of your current savings to a high-yield account. Some financial institutions, mostly those found online with no branch location, offer a higher interest rate on traditional savings accounts than brick-and-mortar location. Without the added expense of overhead, online banks pass savings down to banking customers by way of higher rates on savings, certificates of deposit, and money market accounts. Before making the switch, be sure to check for any account fees, minimums, or other restrictions on the new savings account that might damper progress toward your goal.
Set a Realistic Goal
It’s fairly common knowledge that establishing a goal of any kind takes some forethought. It’s even more important when it comes to financial goals, as they often involve several aspects of your day-to-day life. If you’ve already set a savings goal for yourself, spot check the dollar amount you are aiming for to ensure it is attainable. That may require a review of your budget to ensure the funds are each month or pay period, or it may require an analysis of your timeline for reaching said goal. If you have yet to set a dollar amount for your savings goal or a timeline for hitting the mark, start there. The only way to know if you’re making progress is to know what you’re trying to achieve in the first place!
One of the best moves you can make toward reaching a savings goal is to pay yourself first. Everyone has bills to pay to utility companies, landlords or lenders, and insurance companies each and every month – why not add yourself to the list of people owed? Setting aside funds for your financial stability should take place automatically each time you get paid. If you’re nervous about setting up a scheduled transfer into savings, start small with an amount you know you can easily afford. As time goes on, you’ll forget that “bill” is paid each pay period. That’s the perfect time to increase the amount and start the cycle again.
Beefing up your savings this year doesn’t have to be a point of contention. Instead, grab hold of one or more of the tips listed above to kick start your savings habit, and ultimately, work toward reaching your near- or long-term savings goal.