We all know that savings is the backbone to healthy financial well-being, but what is the best way to really save? You can easily open a savings account and try to add funds when you can, or set up automatic transfers on paydays, but is that really enough?
One great way to help your savings flourish is to break up your funds into multiple accounts with goal-driven purposes. Consider opening multiple accounts to really drive your savings into the next level.
- Stay Motivated: Seeing your savings grow towards each of your financial goals can help you stay motivated to stay on budget. Your dreams become more tangible once you see your emergency savings reach $2,000, holiday account reach $500, and vacation account reach $1,000. You can see the gifts you’ll buy, the activities on your next vacation, and the security of knowing your safety net is fully intact.
- Get What You Want in Life: This tactic can also help you realize what you really want. Do you want to travel? Open an account and make it happen. Do you want to go back to school? Open an account and start saving for tuition. Do you want to buy a house? Open an account specifically for your down-payment.
- Leave the Credit Cards Behind: This is a great way to live within your means and still accomplish your goals. You won’t have to worry about going into debt or paying interest. In fact, if you choose an account that’s interest bearing, your goals could even pay you!