Saving and spending may be considered to be complete opposites – money either goes into or out of your bank account. When finances are managed the right way, both can actually complement each other. Your checking account is one of the best ways to control spending and and make saving habits work to your own advantage.
Most people think that saving money is difficult. Thinking that there are insufficient funds to start saving (even when there are) is the reason why most people cannot save. Going through complicated budget calculations can also be stressful. Virtually everyone can save and learn how to control spending habits.
There are many ways to save using your checking account. Evaluate and monitor your expenditures. Take advantage of any bank features that will help you build your savings. So how can spending be controlled with a checking account? Here are a few simple ways that can help:
Choose the right checking account for your needs
Not all checking accounts are created equal. If you constantly use your card for purchases, then look for an account that offers rewards or rebates. You will not only have that new dress, but you will also save a few dollars from that purchase.
So let’s say that a bank offers 1% cash back for purchases up to $3000 per month. If you maximize your account, you will have a savings of $360 in rewards, points or cashbacks annually. You can then deposit that money into a savings account.
Check with your bank for any guidelines they have regarding rewards before opening an account. Pick the one that is ideal for your needs. You need to understand what the rewards are for, how to earn those rewards, or if there are any limits to the rewards earned.
Transfer rewards to savings
Link your checking account with your savings account. Properly planning how and when to use your rewards will help you save money with a checking account. If you let your cashback or rewards linger for a long period of time, there is the tendency to splurge and overspend.
Make sure to think of your rewards as savings – you earn them to save them. This might be difficult to do since most rewards are generally used to cover for the next purchase. However, if you automatically transfer these cashbacks to your savings account, you will never lose track of your goal to save. Knowing how often cashbacks or rewards are credited to your checking account will greatly help put your savings on autopilot.
Look for free checking account options
If you have been paying a monthly service fee or your bank suddenly starts charging one, check if there are any cheaper alternatives available. Interestingly, your bank may offer a more affordable account that still suits your needs. For example, your bank may offer free checking with an e-banking account if you make all transactions online or through an ATM. There is no need to pay any maintenance fees, plus you get to check your account conveniently.
Automate your savings
To be able to really save, you need to stick to the plan and avoid any excuses for not saving. Automating your finances from your checking account is one of the best ways to control spending and save money. If you automate your savings, there is no need to remember dates for when to transfer funds. There will also be no temptation to use the untouched money from your checking account. Link your checking account with your savings account and schedule a recurring payment every payday.
Take advantage of free checking account services to help track financial history
Check with your bank if they offer some free services to help track your account. This could include an email or text alert when your balance is low. Text banking could be also another free option your bank may offer which allows you to send a message and receive balance details within seconds. There are also various banking apps that you can install which will help monitor savings and spending habits. If you have an idea about how much money you have left, you will be more mindful of your next purchases.
There are various ways you can control spending and save money with a checking account. Set some goals and make sure that you save consistently. For more information about how your checking account will help with your financial history, contact Calcite Credit Union.