Saving money—we all know it’s important, but it’s often easier said than done. In a world that thrives on spending and wanting more, switching your mindset to become more frugal can be a challenge.
While it may take some getting used to, saving money can become second nature. As veterans in the banking and financial industry, Cornerstone Bank has learned the best practices to help you become an avid saver, no matter how much money you make. Read on to learn our tried-and-true strategies to save money.
1. Open a savings account
Before you go any further, you’re going to want to open up a savings account. The great part of most traditional savings accounts is that the minimum initial deposit won’t be thousands. Many times, all you need is $100 and you’re good to go.
There are also other savings account options such as a certificate of deposit or an IRA. We highly recommend you ask your banker questions to help you determine which type of account will work best for our goals.
2. Link your direct deposit to your saving account
Direct deposit is one of the easiest strategies to save money. If you get a direct deposit from your job, you can opt to have some of it sent to your savings account, rather than sending it all to your checking account. As a result, you know that every time you get paid, you’re also saving money. Plus, it doesn’t have to be a lot. You can even start off with something like $25 from each paycheck.
3. Place leftover funds in your savings
Each week you should create a budget. This budget should be a reasonable amount you foresee yourself spending on groceries, bills, etc. The goal here is to not only stick to that budget but to try to stay below it. At the end of the week, take whatever funds you didn’t use from your budget and add it to your savings account.
4. Maintain a checking account minimum
Even if your bank doesn’t require a minimum daily balance (we don’t at Cornerstone Bank!), push to keep your balance at a certain level. For instance, your goal could be to never let your checking account fall below $1,000. As time passes, you can continually increase that amount, which will act as a cushion if anything were to happen.
5. Try not to over splurge on credit
If possible, avoid spending money you don’t have. Credit overuse can really deter your long-term strategies to save money. When using a credit card, try to only use it when you know you can afford to pay the balance off during the next cycle.
Also, consider your current saving goals. If you won’t be able to save money and pay a credit card or loan bill, you might want to steer away from them.
Learn more strategies to save money with Cornerstone Bank.
Since 2001, Cornerstone Bank has put our customers first, and that means giving them the best banking has to offer. We don’t believe in simple banking, rather we go above and beyond to help our customers make their money work for them.
For more information about strategies to help you save more money, visit our Overland Park office or give us a call at 913-239-8100.