If there is one thing that I have learned over the years is that you have to build a savings account as a backup. It can help you keep your head above water in rough times. And give you some peace of mind when it comes to your finances. If you listen to the many experts out there they say ideally you should have at least enough in a savings account to live off for 4 to 6 months.
Saving that much is easy if you have a good job that pays well and don’t have crazy bills each month. But if you are like a lot of people you have a job that pays the bills and allows for some extra stuff each month but not much more. When that is your reality with money it can be hard to build a savings account that can support you if you need it to.
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The real reason you need to build a savings account
Face the facts. You could lose your job tomorrow.
Or something could happen,(pandemic anyone?) and you can’t work for a little while. If that happens and you don’t have any savings in place you are basically up the creek without a paddle.
On the other hand, if you were to have a bit of money saved up then you would be able to pay your bills for a little bit while you look for work or deal with other things that life throws at you.
I know that you are sitting there thinking “but I don’t have any way to save money up. I barely get by each month” I know the thought process. Been there done that, got a T-shirt for participation in the broke as sh*t game.
And I learned A LOT along the way. At one point I was working 50 or more hours a week as a waitress trying my hardest to keep my family afloat and pay all the bills.
I’m not going to tell you that it’s easy to start building a savings account. Cause it’s not. It is really hard to scrape money together to pay the bills and have some left to put aside for savings.
What I am going to do is give you some advice on how to get started saving money for at least a rainy day. Or a vacation. Whichever you prefer. The point is that you have to START doing something or it will never happen. Before you know it you will have a nice chunk of change set aside for when you need it.
Ways that you can save money
There are a lot of different ways that you can save money to build a savings account. One of my favorites because I waited tables for so long is to save all my change.
You would be surprised at how much you can save up doing this. There have even been times I cashed in all my change and used it to buy Christmas gifts.
Basically, all the change that you get back from using cash goes into a jar or jug and sits until you need it. Save all your change for a year and see how much you have.
Don’t take it to a coin sorting machine, they usually charge a fee. It can be annoying to sort through and roll the change, but not having to pay the fee is worth the effort when you are trying to save money.
This is probably the easiest way to start building up your savings. Instead of using it to buy stuff, you are going to open a savings account with it. That way you have a nice little chunk to start with. When you are ready, get some empty change rolls from your bank and get rolling.
Then use that to open a savings account. Keep saving your change and periodically deposit it in the account. Before you know it you should have a decent amount.
Another way is to save your smaller bills. Just ones, fives and tens. When you save in smaller amounts and deposit it each week or month into a savings account then it is a little easier.
I can hear your thoughts again. “but I don’t ever use cash, I only use my debit card. How will this work for me?”. The answer to that is really simple. Give yourself a cash allowance each week.
Instead of swiping your card all the time for small purchases, withdraw a certain amount each week and that is what you are allowed to spend. Once it’s gone it’s gone and you can’t spend any more money.
I know that sounds difficult to get used to but try it out. You will see that it is easier than you think.
This is also a good way to get in control of your extra spending. I know how rewarding it is to go to your favorite coffee shop and get (insert crazy complicated drink order here). But you really don’t need to be spending $20 or so each week on coffee. You could put that money aside and save it instead.
Related Reading: Money Mindset and Ways to Make a Budget
Other Ways To Build A Savings Account
Saving change and small bills is not the only way to save money. There are different apps and tools that you can use too. The trick is to find the ones that work best for YOU. A great resource on this subject is Millenial Money. You can find a lot more information about finances there.
Cash back Apps
Rakuten (ebates): This is by far my favorite. You can shop through their site and earn cashback for stuff you were going to buy anyway. They also have a Chrome extension that allows you to easily check what cashback deals they offer that day.
Honey: This comes a close second. Just add the Chrome Extension to your browser and it will show you the best coupons for each site that you shop on. While this doesn’t put cash in your pocket it can help you save money when you are shopping online. You can also earn Honey Gold which after you earn enough you can exchange for an amazon gift card. This works best with Amazon, but there are other retailers that are on it too.
Round up account
There are a few different options out there for round-up accounts. The basic idea of this is that each time you use your debit card the change is rounded up and saved to linked savings or investing account. Depending on your goals or needs there are different ways that you could approach this.
Investment apps:
Acorns: When you use your linked checking account the app rounds the change to the nearest dollar and adds it to your investment portfolio. This is a good option if you already have a good bit of money to invest. The app is not free and the accounts range from $1 to $3 USD per month depending on the level that you choose. If the linked account has a lower available balance this might not be the best option for you.
Stash: This is a checking account that lets you earn rewards in the form of stock percentages when you make qualifying purchases. Basically when you make a purchase at a company that has a publically traded stock option a very small portion of that amount will be added to your portfolio when you use your Stash debit card.
Round up checking accounts:
Chime: This is a checking account that lets you link a savings account to it. The savings account has an interest rate of 1.00% which allows you to grow your savings faster. There are different savings options available through the app. One benefit of this is that you can choose to put aside a portion of your paycheck to your savings automatically. Another is that you can round up the change from each purchase made with the account to the nearest dollar. This is a great option if you have a direct deposit through your employer and can put aside a little bit out of each paycheck.
Current: This is another banking app that lets you round up change from purchases to a savings account. There are no fees unless you sign up for a premium account which is $4.99 a month. They have the option for mobile deposits and ATM access all over the country. You can also set up specific savings goals called pods and put money aside for different things. This feature is great if you are saving up for several different things at once. Another cool feature of this is that they have a money management portal that lets you track your spending.
Other Ideas to Build a Savings Account
If you want to look into some easy ways to earn money there are many different things you can try. There is no shortage of simple side jobs that you can start in order to make a little extra money each month. What is nice about some of these is that you can link them to your existing savings account, which can help to build your savings account up.
Simple Side Jobs
Check Out Simple Side Hustle Ideas for More Ideas!
Taking Surveys: This is something that you can do once or twice a day to earn a little bit of money. My favorite site is Survey Junkie. The best part about this is that once you hit $10 you can cash out. The way it works is you take surveys to gain points that are redeemable for cash. There are other things you can do too. You can participate in focus groups, do phone survey’s or even sign up to review products for them.
There are other survey sites too. Swagbucks, and Inbox dollars are both good options too. Each one has its own rules and payouts, but they offer different ways that you can earn money through them.
Food Delivery: Apps like Door Dash, Grubhub, and UberEats have become super popular lately. The way they work is people order online through the app. If you are a driver for them the app on your smartphone alerts you to available deliveries in your area and what you will make for it. Then all you do is go pick up the food and take it to the customer. It’s pretty straight forward and you work when and how you want to for the most part. This is a great option if you are looking to make a little (or a lot) of extra money.
Final Thoughts
No matter how you approach it making sure you build a savings account is really important. It can keep you going if something drastic happens (pandemic anyone?). Or it can help you to take the time to do things that you love to do. The idea of starting a savings account when you have little to no extra money each month can sound hard to do. But in the end there are a few simple ways that you can bulid a savings account and not feel a bite in your regular money. The hardest part to anything is to get started.
So what are you waiting for? Go get saving money for a rainy day!
If there are any other tips or tricks you know of tell me in the comments! I’d love to hear them.
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