This post may contain affiliate links. Read my full disclosure here.
Building my savings account is probably my least favorite part of dealing with my finances, but has to be the most rewarding. Recently the BF and I had to use our savings to pay for a last minute flight to visit my Grandma. There was little time to plan and we ended up having to pay just over $1,000 for our flight. Whether you’ve recently drained your emergency fund or you’re starting from scratch, I’m going to help you build your savings.
Pay yourself first
The big secret to increasing your savings is to pay yourself first. Decide how much you are going to put away and as soon as you get your paycheck, put the money into a savings account before you do anything else. If you wait until the end of the month to do this, you might be tempted to spend the money on other expenses.
Set up a direct deposit or an automatic transfer to send that money straight to your savings account without lifting a finger.
Put “extra” money into your savings account
Put any extra money into your savings account. Instead of blowing your tax return on things you probably don’t need, deposit it directly into your savings account. If you get a raise or bonus, put the extra money into your savings account. If you receive a check or cash as a gift put it into that account! Any money leftover at the end of the month, put into your savings account. Are you noticing a trend yet? 🙂
Use a separate bank account
If you are worried about spending your hard earned savings, create a separate bank account at another bank so it doesn’t show up on your main banking dashboard.
Another resource is Digit. This is a FREE service that tracks your spending and transfers your money into a savings account for you. Digit is FDIC insured up to $250,000, and whenever you’re ready to transfer your money to your regular bank account all you have to do is text Digit.
There are so many different ways to earn extra income, and you can put that money directly into savings.
- Take a seasonal or second job
- Declutter your home and sell unused items on Amazon, Craigslist, or Ebay.
- Make and sell a product on Etsy.
- Use cash back sites such as InboxDollars, Swagbucks, or Ebates
Having ANY amount of money ready for whenever life throws a financial crisis or emergency your way is crucial to keep you from losing the progress made. Set yourself a goal to put just $1,000 toward your savings account this year.
What are some creative things you are doing to build up your savings?