Saving money is probably priority #1 for most of us as our economy fights through the recession, luckily most of us have savings accounts and for sure this comes in handy when we’re all trying to save some money. While many of us are simply putting money in the bank and leaving it there until we’re ready to spend it. However, with a swipe of our debit card we can spend this money very easily, so this isn’t the best way to save money for some of us who are impulsive buyers. Instead, if we have savings accounts we can pick up the way we save our money a notch by learning how to manage our funds.
Here are some ways to get this done:
Don’t link your debit card to your savings account. If you want to guarantee that you limit your access to funds in the bank then take away the easy access of a debit card. Debit cards are as easy to use as cash and offer the benefit of receiving cash back with no penalties. This is great if you’re looking to spend, but if saving money is on your agenda then removing this option will help a great deal.
Divide your Direct Deposit into multiple accounts. Putting money in the bank manually can offer a sense of control with the feeling that you know how your cash is being deposited every payday. However, after receiving every check, if you must cash it first in your checking before moving some to your savings account, you may be asking for trouble. A good way to avoid spending your cash before you can save it, is to have your employer route some of the money from your paycheck directly into your savings account. This way, you won’t run the risk of defaulting on your saving agenda.
Open accounts that carry penalties. This may seem like a strange route to take, but it’s a good idea to open accounts that will penalize you for withdrawals and falling below a minimum daily or monthly balance. This will help pressure you into saving money instead of merely putting money in the bank that you will withdraw only a few days later for an exciting shopping spree. With this type of account, you will learn the meaning of what it means to be financially disciplined.