While keeping a healthy savings account may seem like second nature for some, the idea of saving can be intimidating to others, especially younger generations and students who may lack the financial literacy and confidence to tackle the issue.
Luckily, we’ve come up with some top tips on how to begin saving for your future.
1. Start small
The first tip is to start small. Experts recommend keeping a $1,000 buffer of savings for a “rainy day,” so aim to save up at least that amount. Larger sums can seem unattainable – so aim to simply meet your first goal and then continue to move the goal posts as you become more confident with the habit.
2. Aim high
Saving doesn’t have to be daunting, especially when your money is working FOR you. If trying to keep a healthy balance in your chequing account hasn’t been successful (remember: it’s easier to spend money when it’s readily available), try opening a high-interest savings account. By setting up a monthly direct deposit to this account – which doesn’t need to be a large amount – you’ll be less likely to reach for it. Plus, as the sum accumulates, you’ll continue to earn monthly interest, meaning the balance will continue to grow all on its own.
3. Lock it up
When it comes to saving, think “out of sight, out of mind.” Opening a high-interest savings account or other savings account with a new financial institution provides a larger buffer between you and those funds. By setting aside your savings, you’re less likely to use them, thus allowing you to redeem maximum benefits. Not a credit union member yet? Trying a credit union is the perfect way to get started. Visit your local credit union today and get started on growing your savings!
Let us help you grow that rainy day fund – find a credit union today!