If you are like more than half of the U.S. population that has less than $1,000 in savings, you may often wish there was an easy way to save money.
Many people understand the importance of saving money, yet they believe they don’t make enough to save or they think saving money requires establishing a difficult budget plan. The truth is, individuals can save money regardless of how much they make and without having to create a challenging budget.
Saving money shouldn’t be a grueling task. It simply requires a little bit of planning up front. Like anything in life, when you want to accomplish a specific goal, you must intentionally plan for it in hopes of achieving your desired outcome.
Want to stop being caught off guard by annual bills?
Wish you could save more money to take a vacation?
Does the idea of having $1,000 in savings bring you peace of mind?
If so, saving money may be a little easier than you think. Here’s how:
- Consider opening personal savings accounts with a credible online bank that offer accounts with no minimum balance, no maintenance fees, and an annual percentage yield (APY) of at least 1%. Click here for a list of the best online savings accounts of 2019.
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Create numerous savings accounts that will allow you to save for different areas of life. Ideas include:
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Annual Membership Fees (AAA, Amazon Prime, Costco, etc.)
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Birthday/Holiday Gifts
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DMV Fees
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Emergency Fund
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Vacation Fund
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With each paycheck, automatically deposit money into each account. How much money you transfer is entirely up to you depending on how much money you want to save each year.
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Let’s say you pay $450 each year on annual membership fees. If you take $450 and divide it by 12 months, you should save $37.50 each month or $18.75 every two weeks for 12 months.
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What if in October your friends and you decide to take a vacation to Napa next September, but you currently have no money for a trip? To go, you decide you will need $2,500 for airfare, accommodations, and spending cash. This gives you almost 11 months to save from October 1 to September 1. Therefore, you will need to save about $228 each month or $114 every two weeks for 11 months. By doing so, in 6 months you will have $1,368 in savings, which can be used a few months prior to leaving on vacation to purchase your airfare or secure your hotel/Airbnb.
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If you are tired of not having any money in savings and decide that starting January 1st you will start putting money aside to ensure you have $1,000 saved by the end of December, you will need to save $84 each month or $24 every two weeks for 12 months.
Ultimately, by automatically depositing money whether direct from each paycheck or by manually transferring funds from your checking account to your savings account, you can easily save money without having to create a difficult budget plan. In addition to the money you deposit into your account, if you transfer funds to a high-yield savings account, you will also earn additional free money depending on the account’s annual percentage yield (APY).
Give it a try. You can do it!