Tips for starting a savings account will be helpful if you’ve never had one before! Saving accounts are important, because they remind you not to spend that money. Many people think that if they just don’t spend all of their paycheck, the money left over will be their savings, but this is a bad idea! You almost never have the self-control to not spend money that’s in your account, so it’s nice to have a savings account to keep it safe. Here are my tips for starting a savings account!
1. Shop around
Before you can open your first account, here’s one of the tips for starting a savings account that you should know. Choose a good bank to do your dealings with. Some people like the idea of having their savings account with the same bank they do the rest of their business with, but here’s something to consider. Try opening your account with a separate bank! Then it will make it harder to spend the money from that account if you have more limited access to it.
2. Deposit Money Regularly
One important thing to remember about savings accounts is this: they need to keep growing! If you aren’t depositing money into your account on a regular basis, the account becomes dormant. The general rule is 10% of each paycheck, but if you can afford a little more it won’t hurt to keep setting that money aside and saving it.
3. Don’t Withdraw Money
This tip is kind of a no-brainer, but worth mentioning. Don’t withdraw money from your account! The purpose of a savings account is to have extra money. Set yourself a budget, and try not to exceed that budget. Include your savings into that budget so you can still set money aside each month. It takes discipline, but it’s possible!
4. Have a Long Term Goal
One thing that really helps you to save your money up is to have a long-term goal in mind. If you are saving for something specific, then you will have more motivation to put money aside and not touch it! Choose something you really want or need, and make it your savings goal.
5. Consider the Benefits
There are simply so many benefits to having a savings account! We all love the security blanket that extra money provides, so having a little savings account offers you emergency funds in case you need them. You also get overdraft protection if you choose a savings account with the same bank you use for everyday expenses. Talk yourself into opening a savings account; it’s worth it!
6. Don’t Feel Bad for Spending
Now, the general idea of a savings account is to avoid spending that money. But sometimes, in the case of an emergency or unforeseen expenses, you will need to dive into your savings. When this happens, don’t beat yourself up for it. That’s life, and that’s why you HAVE a savings account in the first place! Just work hard and fast to replace the money so you will be covered the next time.
7. Make Saving a Habit
One word of caution I would like to leave you with. Don’t stop putting back savings just because you finally saved enough to afford the expense you wanted! Make savings a habit. Once you have created a habit of putting back your extra money each month, you can have quite a large sum saved up in several years, and even more by a lifetime!
I opened my first savings account at 10 years old. It was under my father’s name of course, but I loved having my own special account. If you have children, consider letting them have their own savings account! What are your tips for starting up a savings account? Please comment below!