Many times, the hardest part about doing something new is the simple act of getting started. That's also true for saving money. If you’re not currently in the habit of saving money, not knowing where to start can offer a simple excuse to put off getting it done.
Here are some tips from the team at Honor Bank to help you decide where to start when it comes to saving money:
The Best Ways to Start Saving Money
- Create a Savings Account
If you haven’t already, make sure to create a savings account. By having a savings account, you’re keeping your money safe, accumulating interest, and keeping your savings separate from your traditional checking account. If you’re ready to start a savings account, our team at Honor Bank is ready to help you set up your account to get you started.
- Automatic Payroll Deductions
After creating a savings account, talk to your HR department about setting up automatic payroll deductions. This makes saving easier, as it’s proactive, the amount deducted from each paycheck is decided ahead of time, and it is out of sight and out of mind. As you feel more comfortable contributing more to your savings account, you can easily make updates to raise your payroll deductions.
- Create a Budget
Don’t leave savings contributions for after you’ve paid your bills – proactively plan for saving. By making a space for savings on your monthly budget you can ensure you’re saving the perfect amount for you. If you get a raise or earn more money, consider increasing the amount you put into your savings account monthly. We also suggest using the 50/30/20 rule when establishing your budget. This gives you 50 percent of your income for necessities, 30 percent for wants and 20 percent for savings.
- Start Small
The best way to start saving money is simply to start! For instance, find reoccurring monthly payments or subscriptions that you do not need, cancel them, and start putting that money into your savings account every month. This small amount of money is the perfect way to start building your savings.
You can also do something as simple as calculating the money you saved at the end of each week and transfer that amount to your savings account. Or put a designated amount in your savings at the end of each week. Another great way to start saving money is by paying your credit cards off, and then put your normal monthly payment amount into your savings.
- Use Personal Finance Apps
Personal finance apps are a great way to start saving money; sometimes automatically! Between budgeting apps or ones that round up your everyday spending to create savings, there’s something for everyone. Learn about our team members’ five favorite personal finance apps to save money.
Trust Honor Bank With Your Banking & Savings Needs
From auto-deducting a small amount from your checking account on a regular basis to budgeting for monthly savings, there are plenty of steps to choose from to start building a savings account.
If you’re ready to take the first steps to building your savings, Honor Bank is ready to help, including by helping you set up the savings account that’s perfect for you. Call 877.325.8031 or submit your information on our online contact form to get started today.