We all know that saving money is important to your financial security, you need those funds when an emergency happens. Whether it’s car repairs or a medical bill, an unexpected bill always happens.
When you look at savings as a chore, you are not inspired to make it a habit. Impulse shopping provides instant gratification which few people get from a savings account bank statement. Saving money doesn’t have to be boring or a pain. Turn saving money into a game to trick yourself into saving while having fun.
1 – Stash Your Cash
Coin jars are a time-honored tradition for saving money. You put all your change at the end of the day in a jar. As the jar fills up, you take it to the bank to put in your savings account. How about you up the ante? Start stashing all your $1 bills and $5 bills too! You could even turn it into a game where you pick a meaningful letter and put all bills with that letter in the serial number away. By the end of the month, you’ll save a significant amount of money to pad your savings account.
2 – Round Up Your Checkbook
Next time you log your receipts in your checkbook, round it up to the next whole dollar. Over time, the spare change you add in will cushion your account and keep you from potential overdrafts. The downside is when it comes time to reconcile your checkbook with your bank statement. Consider using a smartphone app where you can notate the extra funds for ease of reconciling your checkbook. Your bank may also have a program to take the work out of it. Bank of America sponsors a Keep the Change program where every debit transaction is rounded up to the next whole dollar amount and socked into your savings account.
3 – Bank Your Coupon Savings
Grocery stores with loyalty cards charge less for loyal members. After you swipe your card, you get a receipt which often lists the amount you saved during that transaction through coupons and in-store sales. Instead of accepting the savings, transfer that amount to your savings account to pad your savings.
4 – Automatic Transfers
Automation takes the hassle out of savings. Set up your paycheck through your employer to take a specified percentage out of each paycheck and put it into a savings account. You can’t miss what you never received in your main bank account. Consider canceling any debit card and ATM cards to the savings account to minimize impulse spending.
5 – Take Advantage of Smartphones
Smartphone apps make saving money light-years easier. Consider purchasing a personal finance app for keeping your checkbook. Checkbook apps provide multiple account options. Create a savings cushion account where you transfer money from your main account to your savings account in your checkbook only. The money stays in your account but is removed from your available balance allowing you to save money. When you save up enough, transfer it to savings.