Use Technology to Help Build Savings
One way to proactively deploy saving habits is to utilize technology when appropriate, and eliminate it when not. Technology can be a double-edged sword in that some uses make it easier to save, while others only simplify the process of spending money.
The following are tech-oriented tips to help you maximize the money you funnel into savings:1
- When you find a regular expense you can cut, automate that weekly or monthly savings so it transfers to your savings account. Let’s say you save $10 or $20 per week by eliminating your daily coffee run or bringing your lunch to work. Set up your bank accounts to automatically transfer that much money each week from checking to savings, so you actually see the fruits of your sacrifice build.
- Instead of transferring that money into your savings account at your regular bank, shop for an online savings account with a higher interest rate so your money compounds faster.
- Use the 48-hour rule to prevent impulse buying. Once you’ve found something you want to buy — whether online or in a store — wait two days before going back to purchase it. You may decide by then that you don’t need it or it’s not worth the effort.
- By the same token, delete any credit card numbers stored online at your favorite stores or on your browser. This is a wonderful convenience, but having to input the information each time really gives you time to weigh the purchase.
- Shop online for a bank that doesn’t require a minimum balance or charge monthly fees or an out-of-network ATM fee.
- Comb through your checking and credit card statements for the next few months to find automatic payments on recurring expenses you might be able to cut or reduce. At the very least, it’s good to remind yourself where your money is going.
- While you’re at it, unplug your electronic devices and even appliances like TVs, coffee makers and cable boxes when you’re not using them. They use energy even when they are turned off, so unplugging them every time can actually save money on your power bill. An easy way to do this is to use grounded power strips to turn off multiple electronics at once.
1 Natalia Lusinski. Business Insider. Nov. 28, 2018. “12 clever ways to save money every day, according to financial experts.” https://www.businessinsider.com/how-to-save-money-every-day-2018-7. Accessed Nov. 30, 2018.