Saving money is often easier said than done. It’s easy to make a commitment to save money and squirrel it away for a rainy day, for instance, but it’s a whole ‘nother thing to actually do it.
Whether you’re trying to save money for a down payment, a vacation, or just a rainy day, here are some clever ways to stash away some extra cash!
1. Round Up
Every time you spend any money, round the amount up. For instance, if you spend $20.30, round up to $21.00 and stash the change in your savings account. Some banks may even offer special bank accounts that do this automatically. You can also round up in your checkbook register and move any excess money to your savings account at the end of the month.
2. Keep it Even
At the end of every day, I’ve started to log into my online banking account and round my checking account to the nearest tenth, so the balance always ends in a zero. For instance, let’s say I have $1,043.67 in my checking account. At the end of the day, I log in and transfer $3.67 from my checking to my savings. They’re such tiny amounts that I rarely notice them, but they do add up!
3. Divide Your Paycheck
If your employer pays you via direct deposit, chances are you can opt to have your paycheck divided between two accounts. Have the majority of your paycheck deposited into your main checking account and the rest deposited into your savings account. You can choose a small percentage, like 10%, or a fixed amount each paycheck. If your employer doesn’t offer this service, you can most likely set up automatic transfers through your bank’s online portal.
4. Save Cashback
Do you use credit cards that earn you cashback? Another clever way to save money is by saving the amount of money you get for cashback every month. If you earn $10 in cashback in a month, move $10 into your savings account. If your credit card company offers direct deposit for cashback, have your bonus deposited into your savings account instead of your checking account.
5. Save Change
If you prefer to use cash for most purchases, make sure you have a piggy bank set up. Toss all of your change into the piggy bank and cash it in at your local bank at the end of every month. To really add to your savings, you can also dedicate certain bills, like $1 bills or $5 bills, as “savings account bills”. Don’t spend these bills; instead, use them to grow your savings account.
The small amounts of money that get added to your may not seem like much at first, but you might just be surprised at how fast this money adds up! Before you know it, you should have a hefty little sum of stashed cashed! If you want to save even more, use more than one of these methods.