If the stack of bills you receive every month causes you anxiety, you’re not alone. A survey conducted by the Consumer Financial Protection Bureau in 2016 showed that 43% of American struggle to pay their bills. The study went on to show that having a savings cushions strongly enhanced participants’ financial stability. Building your savings may seem simple, but sometimes we need to go back to the basics and remind ourselves of the benefits of a savings account.
Maybe it’s been a while since you’ve really set your mind to save. However, like a diet, it can be hard to reach your savings goal without a plan. Here are a couple tips to get started:
- List out some goals and creating a feasible timeline for reaching them
- Plan ahead
- Ask someone to keep you accountable for reaching your goals.
Categorize your Savings
You can also designate your savings for different uses. For example, there are,
- Emergency funds: As the name suggests, these savings cushion you from emergencies, like unexpected illnesses or accidents.
- Specific events that require significant finances: Perhaps you or a family member is planning a wedding, or sending a child to college.
Where can I put my savings?
Now that you have a plan and some goals for yourself, it’s time to decide where to put your savings. Decide whether your goals require you to save or invest. Whether you choose to have a traditional savings account or a Certificate of Deposit, look for banks that offer high interest savings or CD accounts that will earn money on its own.