Saving money is a great habit. The earlier in life you develop this habit, the more beneficial it is to you. Today, people use savings accounts to save their money. However, did you know that you can grow your money and become rich by using a savings account? No? Well you are about to find out how.
Here, we have selected for you, the best and simple ways steps to becoming rich by using a savings account, so you can enjoy your savings to the full extent and spend them on what you have been long waiting for, such as a new house or a luxurious, relaxing vacation in Hawaii.
However, for these methods to work, you will need to make some changes in your life. As Greg McBride, Bankrate’s chief financial analyst says:
“You really have to know yourself and discipline yourself if you’re going to be an effective saver.”
1. Plan a Goal
If you do not know where you are going, and have no goal in mind, you will have no motivation at all to reach there. Therefore, it is important that you set a goal for yourself—a five year goal is what we would recommend. After each five-year time span, you can revise your goal accordingly.
Once you have researched properly, and have your goal set up and ready, you will be more motivated to save up and spend less from your savings, prompting your savings account to grow at a healthy rate.
2. Change the Saving Process
Generally, what people do when they try to save, is that they pay their bills, spend the money on things they need, and then, if and when the money is left over, they put it away to save. However, this is not a good practice. You really need to think about a specific amount that you want to contribute each month to your savings account, and every month, put the money in your savings account FIRST. After that comes the paying of bills and lastly, the shopping. This method will ensure that you will be saving a proper amount regularly, while also limiting you for spending excessively.
3. Your Deposits should be Greater Than Your Withdrawals
It is one thing to spend money on emergencies; it is completely another thing to spend lavishly on something that you can live without for the time being. The best way to get rich using your savings account is to live below your means. Take a tip from millionaires.
According to Dr. Thomas J. Stanley, co-author of “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy,” most millionaires don’t live luxuriously—rather, they tend to live well below their “means” and save more than they spend.
4. Apply Your Own Methods in Your Daily Life
You can put certain limits on your spending, such as eating out only twice in a week, or spending on a bag once every three months, etc. This method will make sure that you spend less and retain more, leaving you rich later on!