October 12 is National Savings Day, so now is a great time to evaluate your savings habits. Don’t have a savings strategy? There’s no time like the present. Whether you are saving toward a goal, or just building a nest egg, here are some practical ways to kickstart your savings today.
1. Build a budget.
Budgeting is the backbone of most savings strategies. So, map out exactly what you’re bringing in each month and what you spend. Start with the basic living expenses like shelter, food, insurance, transportation, and childcare. Next, make a note of what you spend on things like entertainment, travel, clothing, and other such things. Build yourself an adaptable budget, but don’t overdo it. If your budget is too restrictive, you won’t stick to it.
2. Make specific goals.
Rather than just randomly saving money, set specific goals. If you are saving just for the sake of saving, you may lose momentum. So, declare one goal and designate a deadline. Want to build an emergency fund? Experts recommend you save enough to cover three to six months of living expenses. Find that number and build a timeline. Once you achieve that goal, set a different goal. Here are some more ideas for short-term savings goals:
- Build a vacation fund.
- Pay down credit cards.
- Save for a deposit on a house.
- Buy or pay off a car.
- Fund a home renovation.
- Save for holiday gifts.
- Save enough capital to start a business.
3. Open a dedicated savings account.
If you have a habit of spending the money you intend to save, you are not alone. To make it easier on yourself, open a separate savings account for each of your savings goals. Financial experts recommend this strategy because it allows you to stay focused on your goals while tracking your progress. It will also help you avoid the temptation of pulling money from the account to spend on other things. Here are a few of the popular options you can find at Maps:
- Membership Savings Account. If you are a Maps member, you probably already have this account. It establishes your membership at the credit union and requires a $5 minimum opening balance. You’ll earn dividends on a minimum average daily balance of $100 for this account.
- Share Savings Account. This is a traditional savings account just like the Membership Savings Account. So, it’s a great option for vacation funds, emergency funds, and other dedicated savings goals.
- Indexed Money Market Account. Our Indexed Money Market account is a tiered money market account with rates tied to half the Federal Fund rate that earns higher rates on balances as low as $5,000.
- Premium Money Market Account. Our Premium Money Market account offers our highest dividends and the liquidity to access your money whenever you need it.
- Christmas Club. This savings option allows you to set aside cash for the holidays and earn extra dividends until November (when the funds automatically transfer to an account of your choosing).
- Summer Saver. This account is exclusively for school employees who want to earn interest while saving for summer vacation. It offers penalty-free withdrawals, and the balance automatically transfers to your Maps Membership Savings account on July 1.
4. Set it and forget it.
Automation is a lifesaver when it comes to saving money. Sure, you can manually move money each month into savings, but it’s way too easy to spend that money before you move it (see above). Here are some easy ways to automate your savings:
- Set up a monthly automatic transfer from your checking to your savings account. Even if it’s just $10 a month, those funds add up.
- Have a portion of your paycheck directly deposited into your designated savings account.
- Enroll in Round Up with your Maps checking account. When you do, your everyday debit card transactions are rounded up to the next dollar amount. That difference is then deposited into your Member Rewards account (our highest-yield savings account). Most Round Up members save about $300 per year when they regularly use their debit card.
- Look for low-risk, high-yield savings options like certificates of deposit (CDs) and money market accounts. With a CD, you lock in a specific interest rate for the account term and the account builds guaranteed returns. Or, if you prefer to have more liquidity, opt for a money market account. We have CDs and money market accounts for individuals as well as business CDs and business money market accounts.
- Take advantage of your employer’s tax-advantaged retirement plan, if one is available. Or, set up your own IRA. That way, your money goes into a retirement savings plan or cash savings account before you have a chance to spend it.
5. Reduce excess spending.
You knew this suggestion was coming. It’s not enough to just build a budget when working toward a savings goal. You have to choose—everyday—to make smart choices. That means eating out less, cutting back on travel (even around town), and limiting impulse purchases. Here are a few more ways to save:
- Set yourself up for success with a weekly meal plan.
- Brew your coffee at home instead of heading to Dutch Bros.
- Avoid shopping online.
- Make a grocery list and stick to it.
- Carpool. Or, if you are able, work from home to minimize your fuel costs.
- Streamline your streaming services and eliminate the ones you don’t frequently use.
- Seek out secondhand goods.
- Shop around for car insurance (or let us do it). Experts recommend you reevaluate your options every six to 12 months—especially if you move, get married, or have other big life moments.
6. Manage high-interest debt.
High-interest debt is a killer when it comes to saving money—especially since compound interest payments can significantly increase your debt over time. If your credit utilization (a.k.a., the amount you owe compared to your credit limit) is over 30%, take action. Work to reduce your credit card spending and pay off your balances as efficiently as possible. Try these strategies for getting your debt in check:
- Pay more than the minimum payments.
- Focus on repaying the highest-interest debt first.
- If you have multiple debts, consider consolidating them into one simple, manageable payment.
7. Consider a side hustle.
An obvious way to boost your savings is to boost your income. Consider monetizing one of your talents or hobbies. Or pick up some extra work in your free time by driving for Uber or delivering for DoorDash. Whether it’s to make ends meet or set aside additional savings, more and more Americans are choosing to moonlight beyond their regular revenue stream. In fact, according to a recent Bankrate survey, 36% of American adults have a “side hustle” beyond their main source of income. If you choose this option, be sure to set aside any extra earnings in a high-yield savings account to watch your nest egg grow.
So, happy National Savings Day to all who celebrate! It’s a good time to assess your finances, set new goals, find ways to boost your savings—however big or small. After all, whether you’ve been saving diligently for years or are just starting out, meeting your financial goals comes down to savvy saving.
Want to learn more about the history and fundamentals of banking?
- Check out our article on how to kickstart your savings for National Savings Day.
- Learn how Maps Credit Union got its start—almost 90 years ago.
- Discover the twisted history behind the popular board game Monopoly.