Last Updated on January 30, 2023 by
Saving and spending may seem like opposed concepts. Either money enters or leaves your account. However, if handled correctly, one can become the yin to the other’s yang.
You just need to look at your bank account to get your spending and saving practices to balance one another.
By analyzing your spending and utilizing features that can increase your savings, you can avoid the complicated math and discover ways to save money with your checking account.
What are the most effective methods for saving using a checking account? To create a cash reserve, try these suggestions for saving money with your bank account:
Pick the right checking account
Not all checking accounts are the same. Consider choosing an account that offers incentives for your purchases if you frequently use your debit card and seek methods to save money with your checking account.
Knowing the rules before opening your account is one of the best ways to save money with a checking account if you’re all about rewards.
Sweep rewards for savings
Spend time planning how—and when—you’ll use your incentives when figuring out how to save money with a checking account. Even if saving is your genuine objective, letting your rewards sit in your bank account may entice you to spend or indulge.
It’s simpler stated than done. Not if you use your checking account to save money by setting up an automated transfer of your rewards from checking to savings. Your ability to automate your savings can be aided by understanding how frequently cash rewards are credited to your account.
Double up on cashback
Encourage your partner to open a reward checking account of their own if you’re looking for a checking account savings tip and your finances are joined with your significant other’s. It might be a simple approach to accumulate additional money and incentives.
Once you reach your monthly maximum for rewards earned from your checking account, you might think about utilizing a cashback rewards credit card to pay for purchases for more rewards earning potential.
Just keep in mind to only charge what you can afford to pay off in total if you’re using credit to receive cash back to avoid paying interest.
Match reward spending to your budget
If you want to discover how to use a checking account to save money, earning cash back on debit card purchases will help you get started, but you must still be careful with your spending. Using a prepaid card for teens can be beneficial if you’re looking to save some cash.
Pay yourself like you would your creditors.
Making a budget for your monthly spending is one of the tricks to saving money with a checking account. A line item for the money you intend to keep should be included in your budget and space for your usual expenses, such as rent, bills, food, and transportation. If not, you risk having all the money in your checking account depleted as the month’s pass.
Automate your savings
With automation, you won’t have to worry about forgetting to transfer money to savings or giving in to temptation from idle funds in your bank account.
You can start automating your finances by connecting your checking and savings accounts and setting up a scheduled transfer every payday.
Start a savings challenge.
Budgeting and automating tasks are simple methods to save money with your checking account, but you may also increase your savings by stretching your creativity. Consider rounding up debit card purchases, for instance, to the next 1000 bucks and adding the difference to savings. For example, use your debit card to purchase goods for 1219, round up to 1500, and put the remaining in savings.
To do this, sign in to online or mobile banking, review your daily or weekly transactions, and add the “rounded” amount you want to move to savings. Another option for managing your finances is to use an app that rounds up your debit transactions and transfers money into savings on your behalf.
Take Away
Consider savings as a prize for adhering to your spending plan as another way to save money using your checking account. When you can avoid the temptation to spend money on meals out, for example, put the money you would have regularly spent on takeaway or a dinner with friends into savings. Observing the growth in your savings amount can be a great incentive to continue your saving routine.
