Saving money is an important step in building wealth for generations to come. It’s the easiest way to build, and when you have kids or start thinking about starting a family it’s important. Even if you aren’t planning a family just yet, saving for large expenses like a house or a luxury vacation, is the best way to get what you want when the time comes. I want to share with you how I save money effortlessly.
How Much Should I Be Saving?
Experts say you should save at least 10% of your household income. Personally, I try and follow the 50/30/20 rule. That is 50% to expenses, 30% to wants, and 20% to saving money. For most of us though, that may easier said than done. So, if you’re like me and are looking for an effortless way to save money read these 3 passive ways to help you save money.
Passive Savings Tip #1 – “Keep the Change” Programs
Most larger banks have some sort of “keep the change” program to help you save money. You can take advantage of this program if you have a linked checking and savings account. Banks basically round up your total charge on a debit card and put the change into your linked account. So for example, when you purchase your morning coffee for $4.41, your bank will round up to $5.00 and put the change into your savings account. That change adds up quickly if you buy everything with a debit card. Your bank should all have some sort of “keep the change” program for you to take advantage of, just ask or signup online.
I love the “keep the change” program because the extra change doesn’t put a huge dent in my overall budget, but by the end of the month, I can easily save an extra $50+ in change without having to stress about saving money for the month. I found this Bank of America spare change calculator. Check to see how much you could potentially save each year without a second thought!
Passive Savings Tip #2 – Automatic Transfer Accounts
Another no brainer is an automatic transfer from your checking to your savings weekly, bi-weekly or monthly. I’d suggest setting it up to mirror your pay period. I get paid with direct deposit, bi-weekly, so my automatic transfer is set up for the day after my check is deposited.
Two Auto Transfer Options
There are a few different ways to utilize the auto-transfer feature. One option is to have a certain amount of money transferred from your checking to your savings through your bank. Make sure you can afford the transfer amount. Don’t feel bad if it seems small, because we all know it adds up if you stay consistent. And the more manageable the amount it is the more likely you will keep it going. Don’t set up an amount that you cant consistently commit to. Consistency is key to saving yall.
Another auto-transfer method is having a percentage or specific dollar amount be deposited into your savings account each paycheck through your job’s payroll. When you set up a direct deposit through work you should have this option. Setting up an automatic 10-20% deposit into your savings each paycheck will get you to your savings goal quickly, and effortlessly.
BONUS Savings Opportunity
If your job offers a 401(k) take advantage of it as a passive savings opportunity as well. A 401(k) is a retirement savings plan sponsored by your employer. It lets you as the employee, save and invest a piece of your paycheck before taxes are taken out. Taxes aren’t paid until the money is withdrawn from the account, at retirement. Many employers will match your contribution up to a certain percentage as well, giving you the opportunity to easily double your invest!
I’ll definitely be going into more detail about 401(K) and other retirement investment opportunities, but in the meantime, read more about 401(k) here.
Passive Savings Tip #3 – Cashback Apps and Websites
If you’re an online shopper like I am, this cashback option is perfect for you. It’s one of my favorites because you’re essentially getting paid to shop, so like duh! Apps like Rakuten, formerly known as Ebates, will literally give you free money just for shopping through their website. I do my regular online shopping in my Rakuten account and earn a percentage of my totals. They have hundreds of stores affiliated with them, all offering a variety of cashback percentages. As easy as that.
Each quarter they send me a check for the amount of cash I earned. And guess what I do with that, SAVE! Honestly, don’t ask me why they do this, cause I know it sounds too good to be true, but look at my earnings from this year alone ($87)
How Do Cash Back Programs Work?
If you want to know exactly how it works, check it out here. And if you want to take advantage of this cashback opportunity use my affiliate code for an instant $10 cashback after you spend $25. Join Rakuten and start earning and saving money!
disclosure – This post contains affiliate links, so if you decide to purchase and/or sign up through my link, at no cost or extra effort on your part, I may receive a small commission. Thanks so much for the help!
There are dozens of cashback apps and/or websites you can sign up for, just do some research and find which one works best for you and your spending habits. You’re truly missing out on free, easy money if you’re not using these apps. But most importantly, don’t forget to save these earnings. Rakuten is really my favorite passive way to save money, so don’t leave here without signing up.
Passively Save Money
Saving money for a large purchase, a vacation, or for you and your children’s future shouldn’t be such a hassle. If done smart and effective saving money can be a passive and painless yet fulfilling experience. Try using one, or all three of my suggestions and watch your savings account grow this year, and ugh thank me later! Seriously though, come back to this post and share with us how your savings account’s growing and what methods worked best for you.