We all want that one strategy for saving money that will get us rich quick. However, that’s not always possible or probable. In 2015, human being’s attention span dropped below that of a goldfish. They’ve got us beat by 0.75 seconds. Building wealth is one of those areas you need to just sit back and be patient. Saving strategically is the best way to do that. While it can be difficult to be content getting rich slowly, it’s absolutely worth the effort.
Budgeting is the best way to make sure you know where every dollar goes and how you’re saving. We will talk about that in an upcoming post on spending sincerely. If you’re reading this, you’re probably already saving money. So, for this post, I want to focus on what to do with idle money–the money that you’ve already saved that traditionally sits in a bank account. In my philosophy on personal finance, saving strategically ranks number two. The act of saving and accruing wealth with simple daily tasks such as banking, in my opinion, is the second most important discipline on the journey to financial independence.
Strategies for Saving Money
Let Money Collect Change, Not Dust:
One of the things that makes me cringe most is when someone says they have money sitting in the bank collecting dust. There is never any reason under the sun your money should ever just be sitting in an account doing nothing. Your money needs to work as hard as you did to earn it.
One of the best financial decisions I’ve ever made was making sure all of my checking and savings accounts earn at least some guaranteed interest. Granted, most accounts have less than a 1% interest rate in current conditions, but money is money. Depending on how much you keep in your checking and savings accounts, you could be earning hundreds of extra dollars a year by doing absolutely nothing.
My preferred bank is CapitalOne 360. In addition to allowing you to earn interest on both checking and savings accounts, it has an easy interface, links well with financial management software, has a great app and is totally fee-free. If you do not have an account at CapitalOne 360, I strongly encourage you to check it out today. While I do have some savings stashed at other financial institutions earning a bit higher interest rate, CapitalOne is my preferred account because of the ease-of-use for daily banking needs.
A Penny Saved is A Penny Earned
I got this text from a buddy the other day, “I feel like I owe you something. I have over $1,000 that I didn’t even know I had thanks to you.”
About six months earlier, I had shared with him a new app/service I had been using, Digit. Digit simply takes a couple cents to a couple dollars at a time out of your checking account. This smart-saving service analyzes your spending habits and saves you the extra pennies you won’t miss. In just a few months, I had almost $1,500 saved and I truly didn’t miss a single penny as it was being strategically saved for me. This slow disciplined savings adds up faster than you think. By skimming from your checking account, it also always keeps that balance lower to keep your spending appetite curbed.
The great thing about Digit is that it is totally free, super easy to sign up, does all the work for you and if you need to withdraw from Digit, they will put the money back in your checking account within 24 hours! Try Digit today to save money you did not even know you could be saving.
Another option that isn’t quite as intelligent or automatic is Betterment. But we will dive into that more when we explore investing.
Utilizing Digit and banking with CapitalOne 360 are two of the best strategic saving plans I could ask for. While this doesn’t deal with budgeting to save or with investing your hard earned money, these two services are daily solutions that help but in place an excellent strategy for saving money.