4 Times When You Should Put Money In Your Savings Account
Setting aside money in your savings account is always a good idea, whether you are well-established financially or if you are still struggling to get your finances in order. After setting up your savings account—preferably with a bank that will pay you a decent amount of interest to help your money grow—you should consider depositing money in that account in these situations and more.
If you are like many people, you might receive cash gifts for your birthday or the holidays. Although you might be tempted to splurge and buy yourself something nice with this money, you should consider at least putting part of the cash aside in your savings account for future purposes.
2. Tax Refund Season
If you are used to getting a tax refund when you file your taxes, you might like getting a nice-sized check that you can use to get caught up on bills, purchase essentials, or just live without stressing out about money for a little while. It is a good idea to put at least part of your tax refund in your savings account, however. In fact, this can be a good way to get a jump start on your savings, particularly if you aren't able to put much money aside the rest of the year.
It is a good idea to get in the habit of setting aside at least a little bit of money each time that you get paid. It can be tough to do so, particularly if your budget is already tight, but it's a good habit to get into. Plus, even putting a small amount in savings each time that you get paid can help you accumulate a decent-sized savings account over time.
4. After Receiving a Raise
If you have recently found out from your employer that you will be getting a pay raise soon, you might already be thinking about all of the different ways that you will put the extra money to use. It is a good idea to put at least some of that extra money in your savings account, though, particularly if you have been managing your finances fairly well at your current pay rate. Even if you already put money in your savings account each time that you get paid, it's not a bad idea to reassess and consider putting a little more in your account than usual after you start getting bigger paychecks. This can help you avoid the "lifestyle creep" that commonly occurs when a person starts making more money, and it will help you help your savings account grow at a faster rate.