One of the best ways to secure your financial future is by building up your savings.
You never know when anor period of financial uncertainty may arise and with goods combined with mounting interest rates, now is the time to set yourself up to weather whatever the future brings.
You can start by increasing your savings account balance. That doesn't mean you have to put every dollar into savings or forfeit your other financial goals, like investing or. With a few small changes, you can make a big difference in your savings balance.
3 ways to boost your savings now
Here are a few simple ways you can start increasing your savings right now:
Open a high-yield savings account
The right savings account can help you work toward your savings goal. Use ato earn interest on your balance. These interest payments accumulate over time, helping you grow your savings while .
Today's high-yield interest rates are better than they've been in years andas federal interest rates rise. That's because these accounts earn variable interest. But variable interest rates also mean that today's high interest won't last forever. When federal interest rates eventually go down, the interest you earn on your savings will fall, too.
If you're not already taking advantage of a high-yield account today, you could be missing out on hundreds of dollars added to your balance each year.
Automate your savings
One of the best ways to ensure you're saving consistently is by automating the amount you deposit each month.
Automation is a set-it-and-forget-it approach that helps you save money before you even have a chance to miss it.
There are a few different ways to set up automated contributions. If you receive regular pay via direct deposit, you might put a portion of your paycheck directly into your savings account. Typically, you can decide whether you want that amount to be a percentage of your take-home pay or a standard dollar amount each pay period.
Another option is to set up regular transfers between your primary bank account (such as your checking account) and your high-yield savings account at a standard interval. Every month or every two weeks, for example, the amount you choose will automatically transfer from your primary account to your savings. Always make sure you have enough money in your primary account each time the transfer is set to occur though, so you don't risk any overdraft fees from your bank.
Stick to a budget
If you're having trouble figuring out where to get the additional money to contribute to your savings, it might be time to reevaluate your spending plan and budget.
Take a look at your spending habits over the past several months, and see if there are areas you can cut back or eliminate altogether. Dining out and groceries can be big expenses for a lot of people, as well as other costs like subscription services you don't often use, pricey delivery fees or rideshare costs you could avoid.
If you can reduce these non-essential costs, how much more could you contribute to your high-yield savings account? Even an extra $20 or $50 each month can add up over time and boost the principal balance you earn interest on.
After you start becoming more aware of your spending, you might even find additional ways to save. Knowing exactly where your money is going each month — and making sure each dollar works best for your goals — can be a powerful tool for your long-term financial health.
for more features.