Back to the Future with Your Finances
It’s 2017. There are virtual reality glasses, hover boards and a world of information in your pocket. Not even Back to the Future could predict the incredible technology we have attained. So why are our finances still stuck in the past?
To be frank, it’s no fault of innovation. There are various mobile apps and programs that make budgeting and savings a breeze, but for a lot of people, it is an intimidating step to take. We are a world of instant gratification that is losing the discipline and planning to save for long-term goals. Thankfully, for those who are foreign to budgeting and haven’t ventured into a savings account, there is hope!
Saving is Easier than You Think
Saving money isn’t as hard as it seems. Even on a minimum-wage job, it is possible to save. Saving even small amounts is a baby step in the right direction. However, as with any goal, it’s unlikely that you will stick with it if you set it out of reach, so let’s start with one of the easiest ways to save: automatically.
There are quite a few ways to save automatically, and it really is as easy as it sounds. Think of it as a virtual change jar, without the hassle of lugging a heavy container of loose coins to the bank later. It is easy to set up and gets even easier after that.
First things first: if you haven’t created a savings account yet, this is a must. You can set one up with Lincoln Savings Bank here. If you have an account but never really used it, dust it off and commit to using it for your savings. Predesignate a place for your money, then you are less likely to spend it on impulse-purchases.
Savings: There’s an App for That!
If a general aim of savings isn’t motivation enough, there are apps like Qapital and SmartyPig that allow you to set goals as big as you’d like and even display images associated with that goal to keep your eye on the prize. It is as easy as linking these applications to your bank account and setting up a withdrawal date. It will automatically deduct an amount based on your goal and some apps text you alerts when they do so. Just remember to be realistic about your objectives.
Once you’ve established the mindset of adding small amounts, you can implement even more strategies. While budgeting is strongly encouraged, apps like Digit will analyze your spending patterns and make the deduction decisions for you if this is too frustrating. Qapital will round your purchases up to the nearest dollar and deposit the “loose change” into your savings with zero effort.
Although mobile apps are some of the most popular ways to set up automatic savings lately, you can also check with your employer to see if they provide automatic distribution into a retirement or savings account. This is a set it and forget it option since funds can be taken out of your paycheck before you even receive it. You can go on with life without having to remember certain dates or worrying about spending that designated amount.
Just Do It…Start Saving Today!
Automatic savings doesn’t need to be complicated. By taking a few initial steps, this will help ensure your savings success. Whether you opt for an employee-sponsored retirement account or set-up an app that deposits money for you, find out what works best for you and stick to it.
Lincoln Savings Bank, Member FDIC