Banking 101 | Savings Accounts
Common Saving Techniques
There are many ways to save money, but some techniques are more effective than others. Let's figure out what works best for you and your lifestyle to make the most of your hard-earned cash.
Check out these helpful hints on how to get started.
But first... if we're going to do this, we're going to do this right. This means you'll need to change the way you think about money and be realistic with your goals when planning for saving.
CHANGE YOUR MINDSET
Start thinking about saving as an investment in yourself and your future, not just something you do because you must. When you start viewing saving as an opportunity for growth rather than a chore, it can make all the difference when it comes to sticking with your plan and reaching financial goals.
BE REALISTIC WITH YOUR GOALS
Saving money isn't easy, so don't set yourself up for failure by setting unrealistic goals! Start with small, achievable steps that you can commit to and work your way up from there. This could mean making a budget or setting aside a certain amount of money each month. Whatever you decide, make sure the goal is achievable and tailored to your lifestyle.
what are some saving style techniques that'll help you save money?
CREATE A MONEY-SAVING SYSTEM
Creating a system for yourself is key to saving money figure out what works best for you and your lifestyle to make the most of your hard-earned cash. Try a few of these tips and see where you can cut back without feeling deprived. You may be surprised at how much easier it is to save money than you thought!
- 100 Envelope Challenge: Have you heard of TikTok’s 100 envelope challenge? This trend helps you save more than $5000 in 100 days. You can simply label 100 envelopes (with numbers from 1- 100) and pick an envelope each day and insert the amount of money that's labeled on the envelope. (If you don't carry cash, that's OK, you can simply honor the number on the envelope and transfer the number of funds that are within your checking account into your savings account.) Psst… I bet the 100 envelope strategy was around way before it was a challenge on TikTok.
- Automatic Transfers: Many financial institutions have automatic transfer features set up in digital banking where you can set a certain amount of funds to transfer from your checking account into your savings account each month. (You can even set up your direct deposit to be sent to multiple accounts, effectively doing the automatic transfer for you and saving you the hassle of setting it up!)
- Use the Envelope Method: This is an old-school budgeting method where you have actual envelopes with cash in each. One envelope could be for “groceries,” one for “eating out,” one for “entertainment”… you name it! You'll put the exact amount of budgeted cash in each category envelope and then you'll only use that cash for that expense. Here's the kicker - once you're out you're out! (This means no cheating and using a credit or debit card to make that extra Target purchase!)
- Use cash instead of card: Another cash-only technique where instead of using a debit or credit card for purchases and opt for cash. Paying with cash is proven to be more effective when it comes to budgeting and saving money as you're able to physically keep track of how much you’re spending.
Only withdraw the amount of cash that you need and leave the rest, that way you're not overspending.
HAVE MORE THAN ONE BANK ACCOUNT
Consider opening multiple checking and or savings accounts so you can better track your money. This will also help you create a system for yourself that encourages saving - rather than spending. You might choose to open one account for long-term goals like retirement or a house, and another for short-term goals like vacations or holidays.
Don't know how to manage multiple bank accounts? Here's what you should know.
START ELIMINATING DEBT
Debt can be a major barrier to saving money. If you have debt, make it a priority to pay it off as soon as possible so that you can begin to save and invest more of your income. Consider taking on a second job or finding other sources of income if necessary.
Want to know more ways you can start paying down debt here are actionable ways you can start?
FREEZE YOUR CREDIT CARD
If you're having trouble controlling your spending, you can always freeze your credit cards! This will make it possible for you to use them if you need to in an emergency, but will require an extra step (unfreezing) to use it, giving you time to rethink the purchase so you won't be able to spend frivolously on things that aren't necessary.
You can also try moving the card to a secure location or simply leaving it at home when you head out of the day. If it's not readily available and easily accessible, then it will be harder for you to make impulse purchases.
Psst… if you go this route, make sure to remove your card from your mobile pay options so you’re not tempted!
Set reminders on your phone or calendar so that you don't forget to pay bills or transfer money into savings each month. Period This way, you won't miss a payment or forget to save.
Subscriptions to streaming services, magazines, and more can add up quickly. Take a look at what you're paying for and consider canceling any subscriptions that you no longer use or find value in.
MAKE YOUR OWN LUNCH
Eating out can be a huge drain on your budget period make your own lunch and other meals to save money. This will also help you control what goes into the food you're eating, which is always A plus!
LOOK FOR SALES AND COUPONS
Sales and coupons can be great ways to get more bang for your buck. Watch out for these and take advantage of them when you can.
PLAN YOUR SHOPPING TRIPS
Before you go shopping, plan out what you need so that you don't overspend. Bring a list with you and stick to it!
SHOP AT THRIFT STORES
Thrift stores are great places to shop for clothing, furniture, and household items at a fraction of the price you never know what you might find so it's worth taking a browse through.
BE MINDFUL OF YOUR PURCHASES
Before you buy something ask yourself if it's a need or a want and whether if it's if it fits in with your budget period. Doing this will help you stay on top of your spending habits and make sure that you're saving money in the long run.
CREATE A RELATIONSHIP WITH YOUR BANK
No, this doesn't exactly come across as a saving style technique but the relationship you have with your bank could help you save money big time! Why? Talking to a financial advisor is an additional way you can help with meeting your financial needs and obligations; you can ask financial questions and gain insight into how you can manage your money better and more.
ready to make your money grow?
woo-hoo! Saving money is possible with a little bit of discipline and dedication. With these saving-style techniques, you’ll be able to make the most of your money so that you can reach your financial goals.
On top of all the saving techniques listed above, check out some of the savings techniques Skyla offers to help you grow your savings even more:
- Auto Transfers: Saving can be tough, and it takes commitment. Skyla Members, follow these easy steps to set up auto transfers to create a growing savings account without the stress!
- Savings Calculator: Dreaming of that big-ticket item? This savings calculator can help you determine how long it will take you to save for that dream item based on your savings program.
- Budgeting: Want to get a good handle on your monthly budget? Follow these simple 8 steps to create a budget and find a few extra bucks to stash away!
STILL DON'T KNOW WHERE TO START WITH SAVING?
If you're ready to start saving more – but aren't sure where to start – take our Savings Style Quiz. We'll help you figure out your next steps to building a bigger savings account and reaching your financial goals - whatever those may be!
As always, Any of the wonderful staff at your local Skyla branch will be more than happy to help! Not near a branch or short on time? Then simply send us an email or give us a call at 704.375.0183.
As the Content Specialist and author of the Learning & Guidance Center, Yanna enjoys motivating others by uncovering all that's possible in the world of finance. From financial tips and tricks to ultimate guides and comparison charts, she is obsessed with finding ways to help readers excel in their journey towards financial freedom.
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