Some people are blessed with a natural ability to manage their finances. Others, however (hi, hello, that’s me), are prone to slip-ups, especially when it comes to saving. There’s a popular trick that could help.
According to Apartment Therapy Lifestyle Editor Ella Cerón, one of the most popular savings hacks among crowdsourced readers (and her personal friends) is to have a savings account at an institution that isn’t where you keep your primary checking and other accounts.
What’s the rationale?
Those who weighed in on the hack explained that it’s an “out of sight, out of mind,” scenario. Without constant access to the account and no simple way to withdraw from it, they are more likely to keep that money in its place and grow their savings.
In a similar vein, another person recommended the same tip but added the additional step of setting up a direct deposit. Depending on how your employer runs payroll, paychecks can be split between accounts. Simply have a portion of your check deposited into the separate savings. If that’s not available via your employer or you don’t receive a direct deposit, there are apps that can automate your savings as well.
While this hack might be simple, it’s still a popular and effective method to increase your saving abilities. But let’s be honest, saving can be daunting, especially if you’re starting from scratch. Check out these ways to start.
[Via Apartment Therapy]