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Tip 1: Set up a savings account.
The trick here is to set up a savings account at a bank you are not already using. This will reduce the temptation to transfer funds to pay for a bill or misc. purchase. I go as far as to not have a debit or atm card attached to my savings accounts, I physically have to go to the bank and withdrawal money! I know who does that?! I do because it honestly takes that much temptation away. When you are setting up a savings account know the bank's minimum balance requirements and fee schedule. It is optimal to have a savings account with a low or no minimum balance requirement and no charge for having a savings account with the bank. Finally, look for a decent ROI (return on investment). This can be hard with basic savings account but try to find one that offers some sort of interest rate even if it is as low as 0.06% . Adding to your money without having to work for it is always a bonus.
Tip 2: Set a Savings Goal
Great you opened a savings account! Now what? Don't just let it sit there, add money to it! How much? Set a goal. There are a thousand different options on what to set your savings goals for. A great first goal is to save "Baby Step 1" of the Dave Ramsey Program which is $1000.00. Maybe you want to save $20.00 per paycheck. OR save the money you didn't spend on buying coffee OR Save all the money from your side job. Again there is no right answer to setting a goal, but you need to have one. Check out my Free Guide to creating Financial Goals to kick start your savings goals!
Tip 3: Automate the Process
Put your savings on autopilot! This truly is one of the best features banks have come out within the past 10 years. Most banks let you transfer bank to bank just by knowing routing and account numbers. Most employers will not let employees set up multiple direct deposits. Plus you can automate the process yourself if you have to. Set up one day a month, a week, or per pay and run the money to the bank. Treat it like an appointment and never miss a deposit.
Tip 4: Set up Multiple Accounts
If you are saving for more than one things why not have more than one account? We personally have 5 Savings account and will be adding 2 more soon. Dividing your accounts up help you track your progress on each savings goal. Now some might argue that you are missing out on interest. However, since the interests rate is so low for basic accounts you will not see a huge difference. The other
thing to keep in mind is that this money may be leaving the account which will not be beneficial for a higher earning account.
I am sharing this post over at The Thrifty Couple Thrifty Thursdays! Check it out for more great savings tips!