The “I’ll Save Later” Trap: How to Start Saving Today

It’s easy to put off saving for the future, telling yourself you’ll get to it when things are more stable or when you earn more. But delaying savings can cost you in the long run. The sooner you start saving, the more time your money has to grow. Even small amounts can add up, and starting today can set you on the path toward a more secure future.

Why You Need to Start Saving Now
Starting early is crucial because of the power of compounding interest. When you put money into a savings account, you earn interest on your balance. Over time, that interest adds up, and the more you save, the more interest you earn on top of that interest. For example, if you save $200 a month at a 3% interest rate, you could end up with over $7,000 after five years. If you wait a year or two to begin, you could miss out on thousands of dollars in potential growth.
The earlier you start, the more time you give your savings to grow—meaning the sooner you can reach your financial goals.
Try our savings calculator to determine your potential growth.

Start Small, Think Big
Don’t let the fear of not having enough money stop you from saving. You don’t have to start with large sums—just start. Even saving as little as $25 or $50 a month is a step in the right direction. The key is to develop the habit of saving. Once you get used to setting aside money regularly, it’ll become easier to increase your savings over time, especially as your income grows.

Automate Your Savings
One of the best ways to make saving easier is to automate it. Set up automatic transfers from your checking account to a savings account every month.  You can also enroll in roll up programs that roll up your change to the nearest dollar on debit card purchases and transfer the change to your savings account.  This way, you’re paying yourself first, before you spend money on other things. Automating your savings helps you avoid the temptation to skip a month or spend the money elsewhere.

Use Windfalls
When you get unexpected cash, like a tax refund, work bonus, or a gift, consider putting part of it into savings. This “found money” is a great opportunity to build your savings faster without affecting your regular budget.

How to Keep Yourself Accountable
Tracking your progress is key to staying motivated. Use apps like Mint or utilize financial management tools like MX available within your Banks mobile app to monitor your savings growth. Seeing how much you’ve saved can encourage you to continue putting money aside.
Setting milestones can also help keep you on track. Break your long-term goals into smaller, more manageable targets. Hitting those milestones will give you something to celebrate and keep you motivated to save more.

Your Takeaway:
Waiting to save is a trap that costs you over time. Start now, even if it’s just a small amount. Automate your savings, track your progress, and set realistic goals. The sooner you start saving, the more financial freedom you’ll have down the road.
 

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