Starting A Savings Account
Do you have a savings account? There is no shame in saying no and it is not too late to start one! A savings account is an important part in good financial habits and an easy way to keep your money organized.
A savings account is a simple and effective part of banking and money management. When you are saving for something simply remembering that a part of your checking account is saved for something isn’t super effective and stashing cash can be risky.
Even if you don’t have a ton of money to deposit right now you can still create a savings account that you can start adding to over time.
Create An Account
The first step is to look around for a bank that has everything you are looking for. Is there a cap on the number of transactions per month? Do they charge a yearly or monthly fee if you don't maintain a certain balance? Is it easy to put money in from your checking?
If you already have a checking account you will likely want to just open an account with the same bank to make transfers simple and keep your life more organized. But if you don’t like your bank this is a good time to take a look around and maybe move somewhere better suited to your needs.
Generally savings accounts are low-risk and don’t have a ton of requirements but they often have a cap on how many withdrawals you can make every month. Keep that in mind while looking around if that is something you think will affect your decision.
Make An Initial Deposit
You don’t have to dump a bunch of money in your new account all at once but you want to start off with something. Take a look and see how much you can add to start things off. Even if it is $100 your account is now off and running.
Set A Reasonable Goal
It is all about being reasonable with yourself. How much from each paycheck could you auto deposit into your savings that you won’t need to withdraw back? If you are realistic you are much more likely to succeed.
Setting up a savings account isn’t about racing to save as much as possible as fast as possible. You still need to live your life and pay your bills!
Get Into The Habit
What’s left now is the hard part -- getting into the habit of saving. This takes effort over time but will eventually become muscle memory if you stick with it. Decide on an amount you can swing every month and try your hardest to stick with it. After a few months you will see if that amount is realistic or not. Once you have that figured out you can continue on!
Before you know it your account will be big and bustling and you will be able to afford that down payment or pay off that debt that has been following you around.
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