The easiest and most effective way to save is automatically. This is how millions of employees save through 401(k) and other retirement programs at work. It is also how millions of Americans save at their bank or credit union.
The best automatic saving is when you make a decision to do so, then it just happens:
Over time, these automatic deposits add up. $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded. Soon you will be able to cover many unexpected expenses without putting them on your credit card or taking out a high cost loan.
If you can’t afford to save even $50 a month, there are alternatives. Many banks and credit unions will transfer as little as $25 monthly from checking to savings and, as an added bonus, waive any monthly savings fees.
But if even $25 is too much, just save your loose change. If every day you just put some or all of the loose change in your pocket or purse into a jar, and don’t spend it, you will find that in a year you will probably accumulate over $100.
Just saving loose change has persuaded many Americans that they are able to save. And when they become convinced that they can save, they find other ways to build an emergency fund or save for other goals.
Everyone has the ability to save. At America Saves, we say “Start Small, Think Big.” You can start with only $10 a week or month. Over time, your deposits will add up. Even small amounts of savings can help you in the future.
Save automatically. As millions of savers have learned, what you don’t see you won’t miss.