It’s no secret that growing your savings account can seem impossible, especially on a limited budget. Whether you’re one of the 6 million people that are behind on their car payments by 90 days or more, have other bills that need paying off, or simply want to save for a vacation, it’s important to remember that every penny puts you closer to your goal. What makes the process difficult is not knowing the best banking and money-saving strategies. Here are just a few ideas to help you grow your savings this year.
Consider Automated Transfers
Many banking businesses have savings accounts that allow users to set up automatic transfers from your personal checking accounts. This way, you can set a schedule regarding when and how much money you want to transfer into your savings every month. This virtually effortless savings method can help you expand your savings, often without you even realizing that there’s any money missing. But make sure to set a schedule that aligns with your budget, or else you may end up having to prematurely dip into your savings, which is very counterproductive and nullifies your efforts.
Watch Your Savings Grow — Literally
Many people process information easier through visuals, and if you want to be able to see your savings physically grow, now you can! Apps like MoneyLion are now available on the Apple Store, and unlike other savings apps, it allows you to visualize the money you’re saving as stacks that appear on your phone. For many users, being able to see their stacks accumulating makes them less likely to spend it.
Of course, you can still opt for this route without needing any technology — growing your cash savings piggy-bank style is still a tried-and-true method for serious cash accumulation. Once you’ve saved enough, take it to the bank to redeem it for a gift card to save on some gift shopping for the holidays or a friend’s upcoming birthday.
Use Rewards Credit Cards
Finally, for most people credit cards aren’t ideal for low budgets, but there are definitely exceptions when it comes to rewards credit cards. Many cards offer cash back or other rewards for every purchase made with them. If you do find yourself in the position to get a credit card, make sure to prioritize rewards. However, as with all financial products, just be sure to read the fine print before signing up.
Ultimately, understanding these smart ways to grow your savings on a limited budget is the key to achieving your financial goals.
For more information about personal banking options or business checking accounts in Palm Beach, contact First Bank of the Palm Beaches.