Saving money is crucial and a lot of times, people get confused, making it a complex subject. One such thing is that you need a savings account to save your money. This is not true. You can save your money even without opening a savings account. It is the same as you can lose weight from home workouts without going to a gym. Want to know more? Read this article.
Use a prepaid card
Often when we go on trips, we tend to spend more money than we should. It opens our bars to buy just one more drink, one more hoodie, or one more pair of shoes. But that’s when you have to put control over your finances.
You have to stop making impulsive purchases in order to save money. Because sometimes not spending is also saving. When you are planning to go somewhere you can get a prepaid debit card, which will limit your span to the amount that you have topped up the card with. Put a limit on your spending and you will be saving money. Also, research a prepaid debit card that has no charges attached to it.
Certificate of Deposit (CD)
If you find it hard to control your expenses, you can lock your money in a Certificate of Deposit and let your money grow. It is a very simple concept where you put your money in a bank in a fixed deposit for a specific period of time. During this period your money will gain interest income.
It’s always best to go long-term when it comes to CDs because in that way you will gain more returns. The average traditional bank return tends to be lower than the online banks, so you can opt for that option as well. The only drawback with this investment option is that you cannot withdraw money before maturity. If you withdraw your money before that, you will have to pay a penalty which can sometimes be equal to the interest that you have earned.
Monitor your checking account
Almost everything is available online nowadays. You may just be window shopping online and end up buying things that you may not need later. Also, online payments are really easy and that boosts your inner queen or king of desire to buy stuff. It is best that you keep an eye on your checking account and avoid spending more than you have. That will only lead to overdraft fees, which can ruin your saving plans.
Research and find an account with no fees
A lot of banks charge convenience fees when you open an account. Now, this can be $10 or $12 a month. If we look at the yearly amount, it can be $144 per year. This doesn’t seem much but if you put the same amount of money in a 401(K) plan and keep it for 30 years at a return of 6.5%, it would lead you to save $13,000. It is really great, right?
Thus, look out for the options that can give you money in the future instead of stealing it at the present. Look for a no-fee savings account that covers all your requirements.
Last but not the least, the most important thing for saving money is to make a budget. It means that you need to cut out unnecessary expenses and promote savings even if it is just one cent. You can do things on your own to save money, you can teach kids to make more money, and save it in a bank account or a financial instrument that can give you compounded returns. Even paying off your debt would help you to save money in the future. So, all in all, focus on your personal finance and try to improve them each day to save money.