5 Helpful Strategies for Saving Money
Although it does require some self-discipline, saving money can dramatically improve the quality of your life. When you have ample savings, you’ll enjoy peace of mind because an emergency or an unexpected expense won’t send your finances into disarray. Additionally, saving money gives you more freedom to switch jobs, move homes, or make other big decisions. Finally, saving money lets you earn interest and amass wealth over time.1 To help our customers reach their financial goals, Tennessee State Bank is sharing five of the best strategies for saving money.
1. Designate Your Savings for These Three Accounts
Ideally, everyone should have the following three savings accounts:
1. An account for emergencies
2. An account for making major purchases
3. A retirement account2
If you don’t already have one, establishing an emergency fund should be your top priority. Financial experts recommend having at least three months of living expenses in your emergency account if you are only supporting yourself and six months if you have dependents.3
While traditional savings accounts are typically fine for your emergency fund and your fund for major purchases, you will want to use a specially designated tax-advantaged account for your retirement savings, such as an IRA.4 For more information, read our tips for saving for retirement.
2. Start Small
When people don’t have much money left at the end of the month, they often question if it is even worth saving such a paltry sum.5 The answer is a resounding yes! One of the best ways to start saving is to do so in small increments that add up over time.6 For example, if you save just $25 a week, you’ll have $1,300 in a year’s time.7
3. Save Automatically
Saving through automatic deductions can yield great results. A big advantage of having money automatically taken out of your paycheck and deposited into a savings account is that you are less likely to miss this money, because it was never in your hands to begin with. If you are paid through direct deposit, it is very easy to have a portion of your check sent straight to your savings.8
4. Save Money from These Sources
In addition to automatic deductions, you may be able to supplement your savings from these sources:
- A Christmas bonus
- Overtime pay
- A raise
- A gift
- A tax refund9
Getting in the habit of stashing away any “extra” money you receive is a great way to build your savings.
5. Track Your Spending With Our App
If you’re looking to cut back on your spending, it is very helpful to have all of your financial information in one place.10 With the Tennessee State Bank App, you can aggregate all of your financial accounts (including accounts from other financial institutions) and view your transaction history and merchant spending averages. Reviewing all of this information allows you to zero in on your spending habits and identify areas where you can save money.
About Tennessee State Bank
Tennessee State Bank has been serving our local community for over 45 years. With branches in Sevier County, Knox County, Cocke County, and Jefferson County, we offer convenient banking services in East Tennessee. Whether you’re looking to open a checking account, obtain an auto loan, or apply for a home mortgage, we make the process as simple and straightforward as possible. Tennessee State Bank’s motto is “Banking at its Best!”SM, and we strive to live up to that creed every day. Let us know how we can help you by sending us a message via our Contact Form.
Tennessee State Bank is Member FDIC and an Equal Housing Lender.
1. Fontinelle, Amy. “Why Saving Money is Important.” Investopedia, 27 Oct. 2017, www.investopedia.com/articles/personal-finance/031215/why-saving-money-important.asp.
2. “How to Save Money: Strategies for Saving.” MyMoneyCoach, www.mymoneycoach.ca/saving-money/saving-tips/how-to-save-money.
3. Anspach, Dana. “How Much Should I Have in My Emergency Cash Fund?” The Balance, 18 Jan. 2018, www.thebalance.com/how-much-should-i-have-in-my-emergency-fund-2388353.
4. Fontinelle, Amy. “Why Saving Money is Important.” Investopedia, 27 Oct. 2017, www.investopedia.com/articles/personal-finance/031215/why-saving-money-important.asp.
5. Fontinelle, Amy. “Why Saving Money is Important.” Investopedia, 27 Oct. 2017, www.investopedia.com/articles/personal-finance/031215/why-saving-money-important.asp.
6. Herzog, Hitha. “5 Strategies to Save More Money.” U.S. News & World Report, 23 Jan. 2014, money.usnews.com/money/blogs/my-money/2014/01/23/5-strategies-to-save-more-money.
7. Herzog, Hitha. “5 Strategies to Save More Money.” U.S. News & World Report, 23 Jan. 2014, money.usnews.com/money/blogs/my-money/2014/01/23/5-strategies-to-save-more-money.
8. Tierney, Sean. “3 Reasons You Need an Automatic Savings Plan.” NerdWallet, 7 Jan. 2014, www.nerdwallet.com/blog/finance/automatic-savings-plan/.
9. “How to Save Money: Strategies for Saving.” MyMoneyCoach, www.mymoneycoach.ca/saving-money/saving-tips/how-to-save-money.
10. Herzog, Hitha. “5 Strategies to Save More Money.” U.S. News & World Report, 23 Jan. 2014, money.usnews.com/money/blogs/my-money/2014/01/23/5-strategies-to-save-more-money.