Here’s Why Basic Savings Accounts Don’t Work


When you think about it, it’s so much easier to spend, than it is to set aside money in a savings account. What’s the point, right? Every time you transfer money into your savings account, you touch it. You know you have to save, but you don’t. You find yourself constantly saying, “I try to put money in my savings account, but for some reason, I’m withdrawing every dollar I save.”

Here’s what you need to do: Stop using the savings account that’s connected to your checking account! Basic savings account don’t work.

If your savings account is connected to your checking account, you need to refrain from transferring money. The first thing you need to do is open an online savings account, and these are three reasons why:

1. Online Savings Accounts Have Automatic Savings Plans

 

Saving is already challenging, so the easiest way to save is to automatically do it (without seeing it). Most people have issues with savings accounts, because they can easily see their money. Every time you log in to see your checking account balance, you see your savings account balance, too.  The more money you know you have, the more money you’ll be tempted to touch and feel inclined to spend. However, if your mind can’t see it, you won’t develop the burning desire to spend it.

It’s time to automate your savings the same way you automate your bills. An online savings account is an out-of-sight, out-of-mind account that allows you to save without even knowing. They are still simple savings accounts, but they are online, instead. Because you won’t be paying bills from this account, you will not have any reason to constantly check your balance. And if your everyday account is not connected to this account, you won’t have any real reason to log in regularly.

2. Online Savings Accounts Do Not Have ATM Cards

 

When you open an online savings account, you will not receive a new card in the mail. This means you cannot easily get money from the ATM. You also cannot easily swipe your card to buy food or drinks.

Unlike your checking account, money in an online savings account is not easily accessible. You already have a debit card that comes with your checking account. Therefore, there is no need to have another one for your savings account.

3. It Takes One to Two Business Days to Get Your Money

 

What is the first thing you do when you need money from your savings account? You instantly transfer it, and you instantly get it.

We, as people, don’t like to wait. We want things now! If there is something that requires money, it’s simple–you just transfer the money back into your checking account. Well, it’s not that easy, with an online savings account.

Lucky for you, as a future saver, it takes one to two business days to transfer your money back into your checking account, and by that time, you won’t want it anymore, because it will be too late. Online savings accounts are a great way to help train your mind, develop good habits, and build wealth in a simple, unconscious way.

Always remember, saving is only hard if you make hard. Saving is only frustrating if you make it frustrating. Take time to open an online savings account, then set up a small amount to save bi-weekly. Goldman Sachs and Ally Bank are great places to start.

 

 

Ashley M. Fox, a former Wall Street analyst and a Howard University grad, is now an expert in her field as a financial architect. She is the founder of Empify (merging of the words EMPower and modIFY), an education- based organization created to help working professionals, small business owners, and the youth build wealth from the ground, up. Ashley focuses on the creation of life altering curricula, informative digital content, and interactive events curated to teach the basics of financial literacy. Ashley is a highly sought after speaker, and she has been featured on empowerment tours, college campuses, and keynote speaking platforms. She has been featured on Jim Cramer’s “The Street,” Yahoo Finance, AOL, Philly.com, Huffington Post, and Glamour Magazine.

 

Twitter: @_Ashleymfox   Facebook: Ashley M. Fox


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