Are you saving for a vacation? A dream house? College tuition? Whatever your savings goals are these methods can help make your savings grow faster automatically, so you can reach your goal sooner.
[Read: Online Holiday Savings Tricks]
1. Put Yourself First
– Save money before you have the chance to spend
One of the best ways to automatically make your savings grow faster is through payroll deduction. This is similar to direct deposit, but instead of your money going into only one account, a portion of your paycheck is put towards savings. You can designate a certain amount of each paycheck which will be towards a savings or retirement account. This makes savings so easy you do not even need to think about it. Check with your employer to see if you can directly deposit your paycheck into multiple accounts.
2. Round Up and Save
– Round up purchases and save the difference
This method of making your savings grow faster automatically is a service offered by some banks, such as Bank of America. With this program, if you make a debit card purchase, your purchase will be rounded up to the next whole dollar amount. The difference is then transferred directly to your savings account, letting you automatically save a few cents with every purchase. For example, if your daily coffee is $2.50, your cost would be rounded up to $3, and $0.50 would be transferred into your savings account. This alone would automatically give you a savings of almost $200 annually.
3. Keep the Change
– Save the change from purchases
If your bank does not offer the round up program, there is a low-tech version that still helps you make your savings grow automatically. Did you have a piggy bank as a child? Those are not just for kids anymore. Find a piggy bank, or any similar sized container, and throw any change you get throughout the day into it. When your container is full, it is time to cash in. Most banks will transform your change into cash for free if you have an account with them. If your bank does not offer this, try using a Coinstar machine, which will load your savings onto a gift card from a variety of retailers.
4. Use Cash, Not Plastic
– Paying with cash can help save money
Like most people, you probably pay for most purchases with a credit or debit card. However, this could actually be hurting your savings. Multiple studies have shown that customers who pay with cash instead of plastic spend less on average, possibly because they are better able to visualize how much they are spending. McDonald’s found that the average credit card user pays $7 each visit, while cash users pay only $4.50. This simple switch can easily help you make your savings grow automatically.
5. Make Your Credit Cards Work for You
– Easy to earn cash or points with credit cards
While it is preferable to pay with cash, there are bound to be times when you have to use a credit card. However, these can still make your savings grow automatically. Many cards offer a form of cash back or points that can be turned into bonuses. Check out this article to help you pick a rewarding card.
6. Save the Discounts
– Put the money you save in a savings account
Do you use coupons? Or look for the sale signs? Using the money you saved with these discounts is a natural way to make your savings grow automatically. Often, when you look at the bottom of a receipt after your shopping trip, it will state how much you saved. Take the amount you saved and deposit it into your savings account. This is an easy way to reward yourself with the money you did not spend!
7. Save with Automatic Transfers
– Automated transfers to your account helps your savings grow
Most banks offer some form of automatic transfers if you have both a savings and checking account with the same bank. This means you can set up a recurring transfer between your checking account, so you are automatically making your savings grow each month or week. This can have dramatic effects on your savings. For example, if you automatically transferred just $5 a week, your savings account would have an extra $260 by the end of the year!
If you start using some or all of these easy money tips, you are sure to see a great result in your savings account very soon. This is certain to help you to reach your savings goals, whatever they may be, much faster. Want more ways to save? Check out this video with some great tips!