How to Get the Most Out of Your Savings Account
Starting a savings account is easy. Putting money into one isn’t too difficult, either. But how do you get the most out of a savings account in order to make your money truly grow?
This question can be tricky, but with a little education and self-discipline, you can be on your way to growing your savings. Keep reading to learn how.
Pay your account via your paychecks
You have to have money saved in order for your savings to grow, right?
Pay yourself first. Make this your new mantra! Before paying others for goods and services — especially ones that are frivolous or unnecessary — pay yourself by depositing money into your savings account in order to help build your savings. This may require you to live on less, but it can also serve as a valuable lesson in how little you really need to live a fulfilling, satisfying life. And when it comes to savings, a little self-discipline goes a long way!
You can automate your savings by designating a desired amount of your regular paychecks to be deposited into your savings. The more money you have saved, the larger the sum building interest in your account will be.
If you’re constantly withdrawing money from your savings account, your regular deposits aren’t doing much good, are they?
When your savings account really starts growing, quick money transfers can become increasingly tempting, but it’s best not to give into this. If you want your account to continue growing, you have to be sure that your deposits outweigh your withdrawals.
By naming your account based on a savings goal (e.g. “House Fund”), it may be easier to stay strong when it comes to holding off on spending. Delaying instant gratification is much more worthwhile if you’re holding out for something grander and more rewarding, like a nice house, a comfortable retirement, or a college education.
Take advantage of new banking technologies
Different banks and tech companies are developing all sort of revolutionary technologies for you to get the most from your savings. Some will let you deposit a certain amount of money every time you buy a certain item, like $5 every time you purchase a coffee.
Lots of technologies and options are out there, so it’s best to do your research and find the one that best suits your needs.
As previously mentioned, instant gratification is the most significant threat to your long-term savings goals. By putting off tempting buys today, you can reap more fulfilling rewards in the future.
Your savings account it what you make it. Do what you can to get the most out of it.