Saving money isn’t always fun.
There, I said it!
And, when you have to rely on yourself to take the money that’s sitting oh so prettily in your checking account... and manually move it over to a savings account... at your same bank... a few doors down from your forever-BFF checking account… it’s even less fun.
The usual cycle is to: unhappily move a few dollars over from checking to savings (when you remember), let it sit there in savings for a bit, and then end up transferring it back to your checking account because of a new “want” or “need” that is going to cost a few more bucks than you have available in your checking account.
Time to break the “no save” cycle, yes?
Especially now, in these uncertain economic times, saving should move to the top of the to-do list.
Because having money tucked away in savings is a key component to help you ride the waves of any future economic turbulence.
Great news! I have an easy-peasy solution to help you overcome all of the savings drama.
It starts with your savings mindset...
One of the biggest obstacles to successful saving is YOU!
Yes, you (LOL).
Taking yourself (no shade) out of the equation is key to sticking to your saving goal(s).
Many of us have the mindset that saving is hard, but it doesn’t have to be.
A really great (and effective) way to tackle the stress of it all is to take small, simple (automated) steps to consistently form savings habits that crush your financial goals.
And, another key to “saving like a pro” is to make your money inconvenient because as I love to say… “inconvenient money gets saved”.
What is inconvenient money? It’s money that you save in an online-only savings account.
Online-Only Savings Account Magic
Online-only savings accounts are my jam.
Here are just a few reasons why…
It takes 24 hours or more to transfer your money from an online-only savings account back to your current bank account. This makes your money inconvenient... and less likely to be touched. The mandatory waiting period will stop impulse spending of your savings in its tracks.
Pro Power Move: Make sure you don’t open a checking account at the same bank where your savings account is. That would totally blow the critical inconvenience element and make it faster to transfer funds and use them. This is no bueno and will encourage unplanned spending.
Higher Interest Rates
Online-only savings accounts often have a higher interest rate than traditional banks.
They can afford to give you a few more coins in interest because they don’t have to maintain the costs (like paying rent) associated with traditional, brick-and-mortar banks.
This means you make more money on your money! Woot woot!
Please keep in mind that the interest rates fluctuate based on federal regulations, so be on the lookout for any drastic downgrades to your current interest rate and be prepared to pack up and move for a better rate elsewhere if you’re inclined to.
Online-only savings accounts tend to have lower fees… and some have no fees at all!
This is a key advantage because you can earn interest on your savings without having to pay sneaky account maintenance fees.
Also, many online accounts are known to waive overdraft fees, have no minimum deposit or balance requirements, and will allow a certain number of free ATM withdrawals at other banks.
Pro Power Move: AUTOMATE, AUTOMATE, AUTOMATE! Take the thinking out of the equation and automate your savings!! Set up a certain amount to automatically transfer from your checking account to your online savings account at a regular interval. If you have to start with $5-$10 a month, do that. The key is to get started and form the savings habit… no matter the amount.
Before I go, I couldn’t leave you hanging and not give you a few tips for finding the best online-only savings account.
Here’s what to look for when scoping out a place to park your savings:
- An ‘A” grade on my fave comparison site, www.magnifymoney.com
- The highest interest rate offered
- The lowest deposit required to open an account and earn the interest rate advertised
The best online-only savings accounts will check all four boxes!
You can watch a quick video of me breaking down the power of an online-only savings account a little more, right here on my guest appearance on Iyanla Vanzant’s new show “Fear Not” on OWN...
I hope I now have you convinced that online-only savings accounts are the way to go!
And, if you need any more help with making saving a major priority, join my FREE Live Richer Challenge, Savings Edition to help you reach your savings goals in 22 days here: www.lrcsave.com.
Let me know in the comments if you are setting yourself up to become an automated savings machine?
P.S. Have you heard of my online financial school, the Live Richer Academy (LRA)?
The one that’s already helping 35K+ students crush their money goals?
Yup, we have more than 60 top financial experts in the Academy walking our students through every stage of the journey to live richer: from money mindset… to financial fundamentals… to major life events… to business… to investing… to stocks… to estate planning and protections… to a fulfilling life post-retirement.
The Live Richer Academy coursework can be worked on at your own pace and we’ll always have something new to offer you no matter what financial stage you’re in right now.
Membership also includes VIP access to our private community forum and exclusive members-only online events, like our live, weekly "Ask the Expert" series.
Grab a special discount to the LIVE RICHER ACADEMY here: www.joinlra.com.