Hi, if this is your first time reading my blog, thanks and I hope you stay!
Today’s blog post is going to be about saving money for a trip or life!
If you’re like me, you’ve got a lot of bills: car payment, car insurance, student loans, rent, cell phone bill, etc etc. These things add up and can seem like it’s impossible to save for that dream trip you’re dying to take. It’s really difficult to save and traveling is expensive. Hotel costs, food, souvenirs, tours are just a few things we anticipate paying for when we’re on a trip. I want to help alleviate that stress so I’ve written about a few different ways I save so I can take the trips I want.
*Disclaimer: I am not a financial advisor so please make sure to do research and choose the best option for you.
1. Qapital App
I found the Qapital app while browsing NerdWallet two years ago and I’ve been using it ever since. This app allows you to determine how much you save and what kind of savings you want. Once you connect your bank account to it, you can set up how much you want it to save. The reason I like this app is it creates a separate savings account that I can’t see when I log into my bank account. It’s only accessible via the app so I often forget I have it, but it’s very easy to transfer money from the app to your bank account. However this savings account does not accrue interest. There’s a few different settings that they have so I’ll just write the ones I use.
The first is the round-up savings. Every time I use my debit card, or pay a bill, it will round up to the next dollar and withdraw the change into my savings account. (Example: I spent $3.50 on coffee, it’ll withdraw $0.50 and put it into a savings account for me).
The second setting I use is 54 deposits. This starts out withdrawing $1 on the first week, $2 on the second week, $3 the third week and so forth. You do not however receive any interest on your savings.
There are many other settings you can choose to increase your savings and different goals you can create. You can sign up here.
2. Acorns App
I really like this app because it’s very basic to use and allows you to invest easily. This uses a similar model that Qapital uses by rounding up and taking the change and saves it for you. Th only difference is this app invests the money rather than putting it into a savings account.
This does come with a monthly fee of $1 (or $2/$3 if you want more features). I honestly don’t know more about this app except that it takes my money and invests it, I watch it grow and can withdraw it pretty easily.
3. Save your tax return
This is probably something you hear from your banker or financial advisor (if you have one) but saving your tax return and investing it can help you in the long run. Every year I take my tax return and place it in a CD for 12 months. This way, I can’t spend the money, and I’ll be penalized if I try and withdraw it early. By placing it in a CD, I’m also allowing it to be invested. After the CD matures, I only withdraw the money that was earned on it and keep the initial tax return in the CD. I use Marcus by Goldman Sachs for my CDS.
4. Recurring Savings Deposits
This is something else I do that has been really helpful. Through my payroll department, I’m able to have a recurring deposits withdrawn from my paycheck before it comes to my checking account. If you are able to do this at your company, I suggest you enroll in this. For me, this means I am able to put money aside every month without having to do it myself. These savings are is also not connected to my daily bank account but is easily accessible to transfer money to and from. For me, the best way I’m able to save is if I don’t see the money. I use Barclays Online Banking for this savings account.
Hope this was helpful and not too boring. Do you have any savings tips that you think are really useful? Let me know in the comments below.