Today, I want to share a few tips on how to quickly build your savings account. First, I like to treat my main savings account as an emergency fund. I only dip into in case of an emergency and it must be a real emergency. I also try to keep a minimum balance of $1,000 in the account at all times. That way if something unplanned arises, I’m prepared. However, building your savings account to that $1,000 mark or past it can be hard. There are a few things you can do that can really help you.
ONE: setup an automatic transfer from your checking account into your savings account on payday. This way you will never actually miss the money that you put away because it’s not in your account for very long.
SECOND: establish a portion of each paycheck to be automatically transferred into a savings account. A lot of employers utilize automatic deposit for employees. And they may allow for your check to be deposited into more than one account. If so, use this option. It’s a great way to force discipline.
THREE: Create a savings account at another bank. This one will be hard to establish a transfer for, but you can avoid the temptation of transferring money out of your savings. A lot of people find it difficult to say no when something comes up. A trip out of town for the weekend is not a good reason to transfer money from your savings account. By having a separate banking account at another bank then you can make it harder on yourself to take money out.