Most Americans Have Less Than $500 in Savings -- Here's How To Start Saving
Most Americans Have Less Than $500 in Savings -- Here's How To Start Saving
It's no secret that the majority of Americans are living paycheck to paycheck. What may be more alarming to learn, however, is that nearly half of Americans have less than $500 in savings. Here are six ways to get started on saving.
If you try to get $10,000 in your savings in just a few months, you're likely to get discouraged and fail. But if you start slowly, you're likely to find both success and confidence that you can continue to save.
Start Slowly
Life can be busy and stressful. It's also human nature to tend to spend money that's "just sitting" in a bank account. For both of these reasons, it's important that you automate your savings.
Automate Your Savings
Once you've adapted to your initial savings rate, try to boost it in small increments on a regular basis. Increasing your rate in small increments will make it easier for you to adapt.
Incrementally Boost Your Savings Rate
Although you can keep your savings account with your local bank, be sure to check out the interest you'll be earning. Most online high-yield savings accounts pay 10x or more the yield you can get from major traditional bank.
Choose the Right Account(s) for Your Money
Anytime you receive any "extra" money -- such as a bonus, a tax refund, an inheritance or some other type of gift -- try to bank as much of it as possible. This will work wonders in shoring up your financial foundation.
Bank Any 'Found' or Bonus Money
Taking on more hours at work, working a side gig, or asking for a raise are all ways that you can increase your cash flow and free up more room in your budget for savings.