When it comes to your financial health, you may find yourself focused solely on eliminating or avoiding debt. While this is important, it’s also essential to make sure that you are building up your savings. Growing your savings account balance will ensure that you are prepared in case of an emergency and allow you to plan ahead for vacations and other major expenditures. Continue reading for a few tips to help you grow your savings.
Establish a Budget
The first steps to building up your savings account balance are evaluating your spending and setting a monthly budget. Determining where you are spending money right now will make it easy to see where you can eliminate unnecessary spending—for instance, if you discover that your daily coffee shop trips are adding up to hundreds of dollars each month, you can set your budget to allow for weekly trips that are supplemented by home-brewed coffee. Once you’ve cut back on extraneous expenditures, you can funnel all of that extra money into your savings account.
Pay Yourself First
It may be tempting to simply save whatever is left in your debit account at the end of each month. However, this technique makes it easy to overspend on impulse purchases. Instead, follow the concept of paying yourself first—before spending any money from a paycheck, transfer a set amount into your savings account. Setting up your paycheck’s direct deposit to be split between your savings and debit accounts automatically is a great way to ensure that you pay yourself first each pay period.
Save Extra Cash
Many people consider their tax returns and work bonuses to be extra spending money. However, if you are trying to grow the balance of your savings account, consider placing any cash flows you haven’t incorporated into your budget into your savings account instead of going on a shopping spree. This will allow you to boost your balance quickly, bringing you closer to your savings goal.
If you haven’t yet opened up a savings account, stop by Alpine Bank in Steamboat Springs. This locally-owned bank makes customer satisfaction a priority. In addition to savings accounts, they offer mortgage, trust, and electronic banking services. Learn more by calling (970) 871-1901.