Savings is a vital part of being financially healthy. Yet most Americans don’t save enough. According to a 2017 survey by GOBankingRates, 57 percent of Americans have less than $1,000 in their savings accounts, and 39 percent have no savings at all.
Here we detail tips for saving so you can protect yourself from financial emergencies, plan for the future or make big purchases. If you make savings a habit, the process won’t feel like a sacrifice. Here’s how.
Your first step should be to open a savings account. Opening a savings account can go a long way toward reaching your goals. You don’t want your savings in the checking account you regularly use, or held as cash, tempting you to spend. Accounts differ by financial institution, so it pays to shop around. Look for savings accounts that allow easy and penalty-free access to your money.
Researchers have found that an effective way to save is to start with an end goal in mind. Write down your goals. Keep them in your wallet so that you see them whenever you might spend on impulse. And imagine in detail the feeling of accomplishment you’ll have when reaching your savings goal.
Here are three common savings goals to consider:
Research has shown that people who set up direct deposit into savings accounts tend to save more over time. This highly effective method is easy to do.
There’s more to learn, so continue reading about your savings options.