4 Ways to Make Saving Money Work Better for You

Money management is arguably more important now than it has ever been before. And while you may not be in “savings mode” right now as you tap into various accounts to make ends meet if you’ve been impacted by the pandemic, there will come a day in the hopefully not-too-distant future where we can all regroup and get back to the master financial plans that we all strive for.

Any financial plan should include some savings goal to set yourself up well into the future. But saving money is about much more than just putting aside a certain sum of your earnings every month. It’s about knowing where to invest it, developing a strategy and staying disciplined so you can meet your goals. We’ve put together some tips and suggestions to help your money go further, whether it’s today or in the future:

Develop a Long-Term Strategy

Like we said above, any savings goal needs a long-term strategy, and a successful strategy all starts with selecting the right bank. Do your homework and make sure you select a bank that you see yourself staying with for decades to come. Also be sure to explore interest rates on high-yield savings accounts, as the greater the APY (annual interest yield), the better for your money. Be sure to pay attention to other factors too, such as the frequency in which the bank pays interest, withdrawal limits, etc.

Maximize Your ROI

The average APY of a standard savings account is just a measly 0.06 percent, so you’ll want to explore high-yield savings account options, which typically have a higher APY. Other options are money market accounts and CD ladders. When opening any new account, you’ll want to pay attention to deposit requirements and withdrawal limits. Also, don’t be scared off by online-only banks, as many offer savings options with higher than average APY.

Diversify

If you can, open accounts at different banks. For instance, you might want to keep your checking account with one bank and your savings account with another. This way, you’ll think much harder whenever you go to withdraw cash from your savings account compared to if all of your accounts were under one bank umbrella. It may sound like more work, but doing things this way can help you stay disciplined. Also, if your employer will allow you to make automatic deposits into a savings account, do it. You’ll be more likely to save this way than having to make transfers manually.

Start Small

It’s never too late to refine your savings goal and commit to the future of your financial health. Even if you’re just putting away a small portion of your earnings each month, you just want to be sure that your money is working for you as best as it can. It’s why it’s important to find the right accounts to grow your money. Try to treat your savings account like a retirement fund – start small, and increase what you save by a certain percentage as your earnings allow or as you reassess budgets.