Saving money can seem like a chore. Really, it’s quite the opposite. Saving money can be exciting and empowering! I love knowing that every dollar I put away, has a greater purpose to serve in the future.
How do you save money? Do you have a traditional savings account? Do you save the old fashioned way, with a water bucket or a shoe box? There are different avenues to reaching your financial goals.
There are a lot of money saving challenges. You can find them on Pinterest, Facebook, and Instagram. Most are cash challenges that require you to put away specfic amounts of money, to reach your goals. Check them out! There may be one you find appealing and can best fit your current financial situation.
A traditional savings account is what people think of first when they are speaking of savings. Traditional savings accounts can be free, without a required minimum balance. Depending on what your local bank offers, your interest rate on a traditional savings account can be between .01% up to 5%. Finding a bank that offers an interest rate even close to 5% is highly unlikely at this time. The interest rate fluctuates, and can change rapidly.
Certificate of deposit accounts (CD’s), offer higher interest rates than traditional savings, but usually require a specific minimum balance and funds are not always accessible. These accounts have to mature prior to funds being available for withdrawal. If you do choose to withdraw them prior to the maturity date, you will incur a fee.
Another way to save, is the old fashioned way. Putting money into a container in your home won’t earn any interest, but it is something that you can visually measure, if instant gratification is your thing. My husband and I take cash out of the ATM every payday. When the next payday comes, we take all the combined cash we have left and place it into a three gallon water bucket. We use this for our family Christmas shopping.
No matter what your financial goals are, you are capable of reaching them. Do your research, make a goal, maintain discipline, and your financial dreams will come to fruition.