Saving money is the foundation of financial success. Throughout this guide, we aim to tell you all about saving, from what it is to ways to make saving easier. So, get your piggy bank ready and follow along!
Saving Money vs. Investing
At Welch State Bank, we often hear customers use terms such as investing when it comes to saving money, which is why we thought we should take a moment to educate on the difference between saving and investing.
Saving money can be defined as the process of placing cash in a secure account that can be accessed in a short amount of time. Investing refers to the process of using your money or capital to buy an asset you think has a high probability of generating a safe and acceptable rate of return. Typically, the term investing refers to stocks, bonds, and real estate. It can also mean this money you invest can be not accessed for quick withdrawal – like a checking or savings account.
How Much Money Should You Save?
This varies. In the beginning, as you are learning to save, no amount is too small. However, the ultimate goal would be to have three to six months of finances stashed away for a rainy day.
Saving money is not an easy task. Our financial experts understand this. Our suggestion is to learn to pay yourself first. By that, we mean putting a certain amount of every paycheck into savings for your future before you pay your other bills.
What Ways Can I Make Saving Money Easier?
Saving money can be difficult. Life has a way of throwing unexpected emergencies at us, which can put a wrench in our ability to save. If you are struggling to save, try making it a game. See if you can find ways to spend $100 less a month, for example, cook at home a few nights instead of ordering take out. At the end of the month, take that $100 and place it in your savings account. Then set goals to reward yourself when you reach certain savings levels.
Should I Pay Off Debt or Focus on Saving Money First?
This is a tricky question that we often get asked. Debt is a huge hurdle to get over before you start saving money. Deciding whether you should start saving money or paying down debt first can be difficult. We suggest that you save at least $25 a month to begin establishing emergency funds so that you don’t have to use your credit card for all emergencies. Even putting a small amount into your savings each month or each paycheck can help you in the long run.
How to Open a Savings Account
Knowing how to open a savings account means knowing how to make your money work for you. Cash in a savings account typically earns interest. Ready to get started? Here are the steps to take, along with tips on finding the best option for saving your money. Opening a savings account with Welch State Bank is a breeze!
1. Choose your deposit amount.
You can open a savings account with as little as $50. If you have more built up and available to start your emergency fund, take the time to have this number calculated for your opening deposit. In a savings account your money is not locked, it is easily accessed and can even be transferred in your WSB_Mobile banking app to your checking account when needed, Just remember, after 3 withdrawals in a month there is a $2.29 charge for each withdrawal after.
1. Apply Now!
You can call us, visit any branch location in person, or start by applying online. We aim to make this process seamless with our online application. Click here to apply for a savings account!