What is your savings goal?
Whether you are saving for your dream vacation to the Riviera, for a beach house on the moon, or if you’d be more comfortable if you had 14 months of mortgage payments accrued: one practice can help you reach your target.
STEP 1, the only step!
Make a deposit into your savings account first: before you spend any money or pay any bills. If you wait to see what’s left at the end of the month, you’ll likely come up short!
Take a hard look at your monthly expenses compared to your fixed income and budget for savings. Start out by moving that determined amount into your savings account and spend the rest of your paycheck accordingly. If your bank offers automatic transfers, take advantage of this service and watch your savings grow. If you need some tips on budgeting, check out our tips for creating a budget and sticking to it.
Find the right savings account
There are a couple things to consider when it comes to choosing your savings account:
In order to make the most out of your growing savings account, make sure you are set up with a competitive interest rate. Currently, interest rates on bank accounts are very low. A quick online search can provide a glimpse of what banks are offering.
Bank account service fees have a wide range from minimum balance requirements, check fees, activity minimums. It’s important that the fees don’t outweigh the interest earned. Request a schedule of fees from your bank, and don’t hesitate to negotiate them down.
Online banking is big competition to the traditional brick and mortar bank. Without the standard overhead costs, they can provide greater benefits. If you are comfortable with this technology, you may be eligible for higher interest rates using an online provider.
Find an account that works for you, a monthly amount within your budget, and give your savings a boost! Each month you can watch your funds build closer to your savings goal.