5 Tips for Stuffing Your Savings

Savings accounts won’t do you any good if they are empty. And even if they have some money tucked inside, they won’t do much if you are not contributing to them on a regular basis. Statistically, Americans have already proven there are not saving enough for emergencies or their financial futures. Most blame a lack of cash for the reason behind their lackluster savings funds, but in most families there is always a way to find the cash you need for financial stability – you just have to make the effort.

Here are 5 tips to promote a healthier savings account:

Automate Your Plan

The only way to ensure you will make weekly or biweekly contributions to your savings goals is to automate your deposits. It takes the effort right out of the equation. Set up direct deposits through your employer or authorize automatic deposits from your bank account to the various savings vehicles you use. You won’t have to login to move the money, and you won’t have to think about what you would rather spend that money on.

First you must find out how much you can afford to allocate to savings. Remember that savings should be a priority over the things you want. Once financial obligations have been satisfied, the remaining balance should be sufficiently divided to fund your savings. For instance, if you have $300 left at the end of every month, divide that by the number of saving goals you have and prioritize how much you put towards each goal. If you have four accounts, consider putting the largest chunk into an emergency savings fund and then smaller equal deposits for vacations, big ticket purchases, and other less urgent accounts.

Use Paid Off Debts

You’ve successfully paid off your student loan, car loan, credit card, or home equity loan. You no longer have to pay $250 a month for that debt, but you should strongly considering keeping that payment tradition alive by putting the $250 into your savings account (or toward another debt). Quite simply, you’ve grown to live without that money for the entire length of your loan. Adding $250 into a monthly savings plan can make a huge difference in reaching your goals. As part of your savings plan consider all of the upcoming loan payoffs you have coming and plan to automate those amounts into savings deposits. You will be less tempted to keep the money in your wallet for spending.

Earn a Bonus/Raise

A bonus or a raise is a nice supplement to what you normally work with in your budget, but it is also an amount of money you have been working without for a long period of time. Unless there is a big financial change in your life situation, you should have enough room to stash the bonus or raise amount directly into savings. If you cannot redirect all of it, plan to put at least a portion of it toward savings. If you do not regularly expect a bonus or a raise, it may be time to consider asking for one as long as your work history warrants such an advance. Proving the case to your employer can be intimidating, but if done correctly will put you in a better position financially.

Tax Refund Boost

Tax refunds are often used as a the money source for big ticket items you can’t otherwise afford. Many people make the mistake of making big plans with their income tax check long before they even file their taxes. It is much smarter to plan ahead for savings rather than rely on an annual windfall from the government. Getting a refund from Uncle Sam does seem like a nice bonus to your financial life, but the reality is that you should aim to break even at tax time. You are essentially providing the government with an interest free loan when you pay too much in taxes each year. It is advisable to adjust your withholdings accordingly so you don’t get a refund each year and get more in your paycheck each week. Even if you want to stick with getting a big check make sure you throw the amount into savings. Don’t blow it on things you can’t really afford.

Budget Cuts

Even if you are not stuck with nothing left to save each month, there are still many ways to add more bucks to your savings plan on a regular basis. Take a good look at your spending and find ways to make cuts for things you do not need to live. Excess cable packages, high-cost entertainment, and expensive grocery trips can be downsized or cut out entirely to allow more cash to be put into savings.

In addition to remaining proactive about reaching your savings goals it is also important that you regularly review and update your goals, especially when you have attained the original goals you set. It is important to always set and strive for new financial goals. As time goes on, the cost of living becomes higher and your original savings goals may not longer be compatible with how you need to live moving forward.

What are some other ways you can stuff extra money into savings every month?

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