4 ways to take the guesswork out of saving
- Automatic transfers
In the same way automatic bill pay ensures you pay your bills on time, automatic transfers to your savings account can help keep your monthly savings goal on track. Decide on an amount that feels comfortable and schedule a direct monthly transfer from the account you deposit your paycheck into to your savings account. You can adjust your transfers or deposits anytime you choose. If you use direct deposit, your program may allow you to split your paycheck so that a portion goes directly into savings.
- Spare change programs
Many families used to collect spare change in a jar to save for a rainy day. These days, apps and programs have harnessed the power—and potential—of small change. The details may vary by program, but generally your financial transactions—such as swiping your debit card when you buy lunch at work—are rounded up to the nearest dollar amount, and the difference is transferred to a savings or investment account.
- Credit card rewards
If you typically use a credit card to pay for things and then pay off your balance in full every month, consider applying for one that lets you earn rewards on your purchases. You can use those rewards as a savings tool. For example, if you earn cash back with your credit card, consider setting up automatic transfers of that money so that whenever you reach a certain rewards balance, such as $25, it will be deposited directly into your savings account, where it could earn interest.