Jump-Start Your Savings
If you have an income and know what your budget looks like, but you don't have any savings, it's time to start. It is often recommended that you have between three and six months' worth of living expenses saved up in an emergency savings fund. There are other forms of savings as well, like putting money aside each month for retirement, college funds, or another type of financial goal.
The goal is to have enough money saved up to cover any emergencies or unexpected expenses that can occur. The cash needs to be easily accessible, so a savings account at your preferred bank or credit union would be a good option. Be sure to find an account that does not charge any fees. Shop around if your current bank or credit union will charge you for a savings account.
Now that you have a savings account that does not charge a monthly fee, it's time to jump-start the balance in that savings account. Here are some ideas to try to incorporate into your financial life:
- Make sure that part of your budget includes a savings account deposit. Even if it is not very much, try to put something away each month.
- Consider experimenting with living as frugally as possible for a month or two. Any money that does not go to basic needs for the month can go into your savings account. Cut anything out of your life that is not completely necessary. That could mean no more eating out, no coffees out, no entertainment, finding a carpool to get to work, or even taking the bus.
- Work with your employer to set up an automatic deduction to your savings account from your paycheck each month. This will force you to save with each paycheck you receive.
- Are you expecting a tax return this year? If so, you can request that it be automatically deposited into your savings account.
- Do you have a lot of items you no longer use lying around the house? Use the Internet to sell some of those unwanted items, or consider having a garage sale. Any proceeds can go directly into your savings account.
- Have any spare time on the weekends or weeknights? Consider getting a second job. Any income from that job can go directly to the savings account.
- If you are up for a raise soon, put that extra money into a savings account once you receive it.
- Keep in mind that these tips can also be used to boost your contributions to other savings goals, like retirement, a down payment on a home, college, and so on.
Workplace Options. (Revised 2024). Jump-start your savings (A. Moyer, Ed.). Raleigh, NC: Author.