Sneaky Ways to Save Money and What to Do with Your Savings

by | Feb 15, 2018 | Articles for Consumers, Financial Planning

If you’re like most Americans, you probably have a savings account – but it might be empty or nearly so. A 2017 GOBankingRates survey found that majority of respondents (57 percent) have less than $1,000 in a savings account, while 39 percent have nothing at all.

Saving money isn’t easy. Even if you manage to resist the temptation to spend money on daily splurges like expensive lattes, unexpected bills can sabotage your efforts. This doesn’t mean you should give up. It just means you need to try some new tactics.

Here are four sneaky ways to save money:

  1. Use a special savings account that rounds up payments. This is a great method because it happens automatically, meaning you can’t forget to save. Every time you use you debit card to purchase something, the amount is rounded up, and the spare change is put in a savings account. Ask your bank if they offer this service. If they don’t, don’t worry. There are apps that are based on similar ideas, including Acorns, which automatically invests your money, and Qapital.
  2. Use a coin jar. The above method works if you’re using a debit card, but if you prefer cash, you need a coin jar. Stick your spare change in there and watch the pile of coins grow. Once the jar is full, you can take it to your bank, or you can exchange it for a gift card at a Coinstar machine.
  3. Get an old-school piggy bank. This method is so simple that even children can handle it. That doesn’t mean it’s not effective, however. A piggy bank can accumulate a lot of money, especially if you stick larger bills in there occasionally.
  4. Start a swear jar. You’ve probably heard of swear jars. Every time you swear, you have to put a predetermined amount of money in the jar. This technique kills two birds with one stone: you’re saving money and you’re breaking a bad habit. It doesn’t have to be about swearing, either. Any bad habit will work.

What to Do with Your Savings

Before you start saving money, you should have a goal. This will motivate you and keep you from blowing the money on something you don’t need.

Here are five possible goals:

  • Make extra credit card payments to reduce the amount of debt you’re carrying. If you have credit card debt, this is an excellent option.
  • Put the money in your regular savings account.
  • Invest the money.
  • Use the money on a big-ticket item you’ve been wanting, such as a family vacation or home renovations. This way, you don’t have to dip into your regular savings for these items.
  • Protect your family’s future with a life insurance policy.