How To Save
Trouble saving? Using two banks can be your solution to financial growth. Typically, people use one bank to handle their money which is usually maintained within a checking and savings account. The bank lists the total amount you have in both accounts. You spend money with a card linked to your checking account with your savings as a backup for when you deplete your spending account. Nonetheless, the dollar amount for your entire bank drops until your next paycheck restores the amount back to your spending threshold and the cycle starts over for the next two weeks.
Now, what if you can watch your savings grow while still being able to spend the amount listed in one bank? The solution is to activate an alternate account with a completely different bank (preferably one that provides a high interest rate that can be compounded monthly). Whatever your paycheck amount is, put away at least 10% into this new account. When you go to look at your original bank accounts, you will see the dollar amount listed and that number will be engraved into your mind to spend on whatever your interests are. No one likes looking at a bank that shows $0.00 so you will still feel the same guilt of spending your whole bank account. Thus, you will stop spending bank A before it bottoms out.
Not only will your emotions stop you from spending, but having your money in two different banks will physically restrict you from spending as well. With delays in transfers, impulsive spending will be stopped and allow you to think if you really need to spend your money on an overpriced latte.
Which Banks to Pick.
Personally, I think Ally is the best savings bank with an interest rate around 0.86%, which is compounded MONTHLY. Meaning that your account is accumulating wealth for you every month and the only cost to you is keeping your money in a safe place.