A roadmap to smarter savings

Like the formation of any good habit, learning to save money requires patience, persistence and, most importantly, a plan. But if you resemble the nearly 50% of American adults who lack a savings plan, setting funds aside each month might be a challenge. The good news? Whether you’re saving for a smaller item (perhaps a vacation is in your future), a bigger buy (maybe it’s finally time to remodel your kitchen) or you just want to have a certain amount of money in the bank, putting a strategy in place can set you up for success. 

To help you meet most any savings milestone, follow these six steps:

1. Set two goals: an achievable bare minimum and a stretch amount. The stretch goal can act as a silent motivator, urging you to save more but demanding you at least meet the bare minimum. Even if you come up short on the stretch goal, the odds that you’ve hit your minimum, and likely gone beyond it, are good.
2. Open multiple online savings accounts. You’ll be less inclined to tap into these accounts if you opened each one to meet a specific goal. Plus, you won’t have to rob your traditional, long-term savings to meet any shorter-term goals.
3. Put your savings on autopilot. Use high-yield interest savings accounts that can help you reach your goals faster — those that not only out-earn other accounts based on their APY (annual percentage yield), but also allow you to set automatic, recurring deposits. By scheduling withdrawals to be taken directly from your paycheck (typically twice a month) you’ll never miss a deposit and, thanks to the power of compound interest, you’ll see your savings add up fast.
4. Act like you’re broke. This simple mindset switch – adjusting your spending habits as though you have less income than you do – can help retrain your behaviors. Remove auto-fill credit card information across your devices to make it more difficult to spontaneously purchase items online. Set a reasonable monthly limit for activities like dining out and only grocery shop from a predetermined list of items you won’t let go to waste. If you get a raise, a bonus or have secondary income from a side job, consider putting it directly into savings. 
5. Create spontaneous spending rules. It’s going to happen. You’re going to see something you want that’s not within budget. Enforce waiting periods to keep yourself from overspending or purchasing something you don’t need while you’re trying to reach a savings goal. For a $50 unplanned purchase, wait at least five days to buy it. For a $100 purchase, wait 10 days.
6. Check in on your progress. There’s no better motivation than seeing results. Given the 24-hour access of online savings accounts like those at Bask Bank, it’s easy to check in and monitor your progress to ensure you are on your way to meeting your goals.

Once you’ve enacted your savings plan, keep your mind set on those numbers and think about how great it will feel once you’ve achieved success. If you stay persistent, you’ll likely find that setting money aside is easier than you thought — and you can optimize and sharpen your strategy to reach any savings goal you set.

Jump-start your savings plan by opening a Bask Interest Savings Account.