I remember listening to a podcast where they emphasized a simple but powerful concept: pay yourself first. Initially, this seemed almost impossible to me—how can I save when bills are due, and groceries need to be bought every month? But two key realizations changed everything: they never specified how much to pay yourself, and I was already doing it in small ways. Understanding that paying yourself first is essentially about saving, I found it much easier to manage. Today, I’m sharing how you can use this strategy to grow your savings.
1. Separate Your Savings Account from Your Checking Account
One of the best decisions I made was keeping my savings account separate from my checking account. I check my checking account 2-3 times a day, which tempted me to spend. By having a savings account at a different bank, it’s out of sight, out of mind. Every time I check my savings, the balance is higher than I expected. That sense of relief and accomplishment reminds me that my money is growing.
Pro Tip: Research shows that having a separate savings account can reduce impulse spending and encourage consistent saving.
2. Automate Your Savings for Consistent Growth
Setting up automated weekly transfers from my checking to my savings was a game-changer. Automation means I don’t have to think about it; it just happens. You can choose to keep the amount the same each week or adjust it based on your needs. Consistency is key to growing your savings, and automating transfers ensures you don’t miss a beat.
Example: I started with a modest $20 weekly transfer. Over time, I increased it, and now I watch my savings grow without any effort. That’s the power of automation!
3. Use a High-Yield Savings Account
Once your money is in a separate savings account, make it work for you by choosing a high-yield savings account. These accounts offer higher interest rates, meaning your money earns more over time. Just be aware that the interest earned is considered income, so you’ll need to account for it during tax season. A popular option is Capital One’s 360 Performance Savings, which has a competitive APY, no maintenance fees, and no minimum balance.
Why It Matters: With a high-yield savings account, you can earn passive income on your savings. It’s a simple, low-risk way to grow your wealth.
4. Define Your Savings Goals and Stick to Them
Think about what you want to use your savings for. Is it strictly an emergency fund, or do you have other goals like vacations, home repairs, or a new car? For me, my savings cover three things: emergencies, vacations, and car services. Limiting the number of expenses tied to my savings helps ensure it continues to grow for both the planned and unexpected.
Personal Insight: Living in the present is important to me, so I’ve learned to balance my savings goals with enjoying life. By setting clear limits, I can treat myself occasionally without jeopardizing my financial stability.
5. Boost Savings with Cash Back Rewards
If you have a cash back rewards credit card, consider allocating your earned rewards to your savings account. It’s an easy way to increase your balance without extra effort. Imagine getting an extra $10, $50, or more added to your savings each month just from regular purchases. Every bit helps!
My Experience: I started doing this, and even small deposits added up over time. It feels great when unexpected money lands in my savings—it’s like a little bonus for staying disciplined.
6. Get Comfortable Saying 'No' to Grow Your Savings
A critical part of growing your savings is being able to say ‘no’—to impulse purchases, social events, and other temptations that can drain your funds. Every time you say no to unnecessary spending, you’re saying ‘yes’ to your financial future. It’s okay to skip a night out or delay a big purchase. The joy of watching your savings grow brings a sense of accomplishment that’s worth it.
Final Thoughts: Being on a financial wellness journey means making conscious choices. For me, learning to say no has been empowering. It’s not always easy, but seeing my savings grow and knowing I’m closer to my goals brings me happiness and pride.
Start Growing Your Savings Today
Growing your savings doesn’t have to be complicated. By automating transfers, choosing the right savings account, and staying disciplined with your spending, you can build a financial cushion that provides peace of mind and freedom. Remember, every small win adds up. Start today, and watch your savings grow!
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These tips are INCREDIBLE!!!! Thank you so much for giving us these gems
Thank you for this. It’s hard to imagine paying yourself first when you have debt, bills, emergencies and all to worry about when you get paid but by applying these tips and disciplining yourself - it will pay off in the long run. I didn’t understand this until I was in my late 20s never too late as well. 💛👏🏾🙌🏾