The goal with savings is to start small. If you find yourselfwithout even 5 percent of your monthly income, chances are you’re going tomiss it. You’re used to having it; and you’re used to spending it. Hence, if you try to change your spending habits too abruptly, you’re only going to go through withdrawal - pun intended.
Let’s take a look at some of the life hacks you can integrate into your savings accounts to get yourself - and keep yourself - on the track to financial freedom...
6 life hacks for your savings accounts
- Find a free savings account at another institution so you don’t have to see it every time you look into your primary account.
- Set up automatic transfers of $5-10 per paycheck. You won’t notice the money going, but you will notice a change in your savings account. Better still, send that money to the savings account you set up at another institution. Most major institutions offer this service free of charge.
- After a month, challenge yourself: increase the amount you put away by another $5-10. Assess what is realistic for you - and remember, don’t bite off more than you can afford.
- Tax-free savings accounts can be your best friend. But what kind of investments are eligible to be held in a TFSA? The possibilities are greater than you probably think. Remember this: any investment that can be held in an RRSP can also be used in a TFSA. This includes GICs, cash, stocks, bonds and mutual funds. And you can feel free to dip into it without penalty and without having to pay tax (but only if you really, really need to, okay?).
- Inquire with your bank regarding any swipe-and-save options. Many banks offer their clients an option in which they can automatically put 50 cents away every time they swipe their debit card. People who still use cash for every purchase can stash away their spare change in a piggy bank. But for those of us on board with the digital revolution, we usually carry plastic. Essentially, your savings account can double as a virtual piggy bank. It’s like putting away spare change from every transaction.
- Get with the times - that account you set up years ago is ancient by today’s standards. Many of us have out-of-date savings accounts that are no longer keeping up with the competitive market. Chances are you’re missing out on higher interest rates, waived transfer fees, and even rewards. Don’t wait for the bank to call you - take charge of your own money. Set up a check-up appointment with yourbanking advisor. Your savings account may be in need of some TLC.
Life hacks for the win
Disclosure: these hacks are all free options and won’t cost you a dime.
Looks like instead of paying your bank, you can make your bank pay you. They won’t mind - we promise.
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