Raise your hand if you hate click-bait headlines. Me too! However, that is NOT what this is.
If you’re anything like me, the idea of possessing impregnable willpower that keeps you from spending on simple (yet expensive) pleasures is disheartening. Passing up my grande caramel macchiato every morning as I drive by Starbucks is a feat I have yet to master. I don’t possess that kind of resolve. However, there is hope for my saving account yet.
Long gone are the days where penny-pinching habits such as depriving yourself of the deliciousness that is Starbucks, or pulling apart 2-ply toilet paper to save an extra $2 a week were the only savvy ways to build your savings. There’s nothing wrong with splurging every now and then. Money was made to be spent and you should enjoy it, just pay yourself first.
We are in the age of automation and continually creating technologies that make life easier. With the inventions of self-driving cars, hover boards and virtual reality headsets (it honestly feels like we’re living in a Back to the Future movie), why not use automated savings? This technology isn’t recent but the majority of Americans aren’t taking advantage of these capabilities.
Check out these two sure fire ways to save money that require little to no work from you. Just put these practices into place and let technology do the rest!
Automatic Savings Apps
There is an app for everything these days and automatic savings is no exception. All you do is connect your bank account to an application such as Acorn, Digit, or Qapital and they do the rest for you. These apps work best for individuals who use their debit or credit card frequently over cash.
With Qapital, you can set up “rules” and round your spending up to the nearest dollar every tim
e you swipe your card. The amount is so inconsequential you won’t even notice you’re saving. Or my personal favorite, the 52-week rule. It works by taking money out of your account over the course of a year, 52 weeks. Week one takes out $1, week two $2 and so on until the 52nd week. After your last deposit, $52, you will have accumulated $1,378 over the course of a year!
For many, investing in the stock market is something you’ve heard you should do but have no clue how to actually do it successfully. That’s where the Acorn savings app comes into play. It’s similar to Qapital, only instead of funneling your rounded up change into a savings account, it invests your money into diverse ETF portfolios! This app probably won’t make you rich, but it is a great non-threatening way to introduce yourself into the world of stocks!
Digit, like the other savings apps, connects directly to your bank and credit cards, but instead of rounding up purchases or using rules to tell it how much money to take out, Digit uses an advanced algorithm that monitors your spending habits and deposits a few dollars at a time into a savings account. They also have a no-overdraft guarantee, promising that they will never transfer more money than you can afford.
The best thing about most of these apps is the initial signup cost is free and r there are no fees. The exception is Acorn, which requires a $15 a year fee if your investments are worth less than $5000 and .275% if your investments are worth more than $5000. Each app uses secure software to ensure the safety of your information and money. Also, you can receive your money from any of these accounts at any time. These are just three savings apps but there are many more. Do your research and pick the best app that works for you!
Savings account deposits
Many employers allow you to split your paychecks among multiple accounts. Set up a savings that automatically deposits a set amount into your account each time you get paid. This is one of the best ways to save a chunk of money without much thought or effort.
Out of sight out of mind! If you’re not seeing the money to begin with, you’re not tempted to spend. Treat the automatic deposit to your savings as any other bill payment.
Whether it’s an online high yield account or savings through your current bank or another establishment, find a savings account that works for you!