Today, Canadian households collectively save $38 billion per quarter, which is an average of roughly $2,500 per household. People are beginning to recognize the importance of saving money, particularly in today’s uncertain times.
When you have some helpful money-saving tips to use, you can stock your bank account with capital that’ll help you in your personal life. Let the tips below help you when you’re trying to figure out how to build a savings account.
Learn the Importance of Saving Money
It’s always important that you understand why savings is so critical. Many people fail to set aside money for savings because they don’t understand the impact that it has on their lives.
Internalize the concept of paying yourself first. You’re your most important investment, so take care of your bills and responsibilities, but always set aside money for your savings to secure your future.
Starting a savings account will help you have somewhere you can build your nest egg. Look into the terms of the account, such as the interest rates, annual fee, overdraft fees, and the maximum number of transactions per month.
Set Different Savings Goals for Your Life
Take the time to also set savings goals so that you have a timetable and metrics to hit. You might want to plan for some of the following matters and life events:
- The purchase of a new home
- Purchasing a new automobile
- Setting aside money for a business
- Planning a vacation
- Saving for your kids’ college
Each goal has a different timetable that you’ll need to hit, along with dollar amounts you’ll need to plan for. Remain diligent in the way that you hit these savings goals so that you’re able to set aside a little bit of money at a time, at a rate that lets you do it comfortably.
Put Together Your Emergency Fund
It’s important to also have an emergency fund when you save money. This is the savings fund that you’ll use whenever you have an emergency in your personal life.
Just like a business needs a business plan, every individual should have an emergency fund and contingency plan for their finances. Your emergency fund should include between 3 and 6 months of income so that you don’t have to stress out if you incur a big expense.
Having an emergency savings account is an essential part of a wealth-building strategy and can help you secure financial freedom.
Create Some Unique Savings Rules
Set some rules for your savings so that you’re able to diligently build your accounts. For instance, you might decide to keep 10% of your paychecks to go toward your savings.
Factor in your income and expenses and determine how much you’re able to comfortably set aside without it hurting your day-to-day life. Having these rules in place builds discipline and makes saving a way of life.
Automate Your Savings
Automation is king when you really want to get results with your savings plan. You can create some automatic transfers for your bank accounts so that you never have to physically deposit or transfer money into your account.
For instance, you might have a checking account in which your paychecks are direct deposited on certain dates. You can attach a savings account to go with it. You can log in online and create rules for the checking account to transfer a percentage of the money to savings so that it happens without you even having to think about it.
This does away with the temptation to hold some money out or put off saving money until the next paycheck. Making savings second nature will build strong habits that are strengthened when you see how much money is stockpiled.
Keep Your Change and Put it in the Bank
Don’t underestimate just how much change can add up. It doesn’t have the crispness or spending power of crisp dollar bills, but your change is legal tender every bit as much as a Benjamin Franklin note.
Change is too cumbersome for most people to want to deal with, but by tossing your change or leaving it lying around, you’re literally leaving money on the table.
Invest in a coin rolling machine so that you can take trips to deposit it into the bank whenever you see fit. This is money that you likely would have forgotten about, but will appreciate having when you see how it beefs up your bank account.
Budget and Take Cash Out to Spend
Part of savings is to get your spending under control. Debit cards are convenient, but also make it easier to recklessly spend.
Instead, take out however much cash you need each week and use that for your day-to-day expenses instead. Money feels more “real” when it’s cash in your hand, and you do away with the possibility of overspending or overdrafting.
Make a budget each month and stick to it so that you’re able to handle your living expenses while also setting aside enough money to save.
Learn How to Build a Savings Account
Consider the points above when you’re trying to learn how to build a savings account. You’ll love how disciplined you become with your finances and how you have money to handle any circumstances that come your way.
If you really find yourself dealing with an emergency, taking out a loan can also be a great idea. King Cash is a loan company that will send you cash in the comfort of your home.
Let Kingcash help you! Get in touch with us on our site (kingcash.ca) or call us at 1-844-895-8808.