Putting your money in a savings account is not the only way to save and grow your money. It is just one of many. Generally speaking, and based on my own personal experience, the more sources of savings you have, the more money you can save. In other words, don’t put all your eggs in one basket. Find alternative ways to save money. Here are some of them, most of which I have tried myself:
-High interest savings account: whether it is at ING, Ally or your local bank, this is a must for all people looking to save their money. Don’t worry about interest rates being at historical lows. They are going up and will continue to. You are not just putting your money there to gain interest. You are also leaving it there so that it is not within your reach, where you could end up spending it.
-Piggy Bank: we already went in-depth about how to save money using a piggy bank. Where your savings account will hold big amounts, use this one to save your loose change (and some small bills occasionally)
-Automatic Payroll Deduction: This is one of my favorite and easiest ways to save. You don’t even see the money and it goes straight to your saving account.
-RRSP: for Canadians, it is highly recommended that they open an RRSP account to compliment their existing savings account. You can use automatic payroll deduction at your company (see note above) to take advantage of this.
Of course, you can choose to go more advanced and start investing your money, buying stocks, currency etc. but that is beyond the scope of this blog for the time being.
Having more than one place to save your money will not only get you more money, it will just give you a feeling of having more money, and this in turn will encourage you to want to save more money.