How to grow your savings account.

No matter how seriously you’ve committed to saving, there are always strategies you can maximize to save money faster. Here are seven tips and tools on how to amp up your savings now for maximum benefit over the long term.

1. Evaluate where your money is going and establish wants versus needs.
   As the famous adage goes, you can’t manage what you don’t measure. First, review your monthly cash flow, noting all of your household income sources and essential expenses (both monthly and annual). Then start keeping close track of your spending on an ongoing basis.
   
   Getting a deeper understanding of your spending will help you identify easy opportunities to cut expenses, whether it’s by canceling services or subscriptions you don’t use, or by reducing habitual purchases.
   
   
2. Set specific and measurable savings goals.
   As with anything in life, it’s important to have a plan and a specific goal you set out to accomplish. You can start out with a one-time amount or an amount you want to save each month or year. Then track your success and make adjustments as needed.
   
   Having a plan you can rely on will make it easier to save. It’s also important to set goals that are realistic and achievable — slow and steady is always a wise approach and can help avoid saving too aggressively and the need to pull back because cash is too tight.
   
   
3. Automate “paying yourself first.”
   Get into the habit of paying yourself first, before any non-essential spending, otherwise you may consistently find that you don’t have cash left to save. For instance, creating automatic transfers from your checking account to your savings account can help you make savings routine.
   
   Commerce has two great tools to help within mySavings Accelerator:
   SmartSave uses predictive technology to find optimal opportunities to save based on your unique financial situation. It removes the guesswork, maximizes your savings and moves meaningful amounts to your savings account.
   
   Round Up is a simple way to boost your savings every time you make a debit card purchase. Round Up helps you save by rounding up your debit card purchase amounts to the nearest dollar. Your Round Up amount is automatically transferred to your designated Commerce savings account. Plus, you can choose the amount you Round Up.
   
   
4. Consolidate any debts.
   Take a look at any debts you have as well as their interest rates. Depending on interest rates, you may want to consider refinancing or consolidating credit card debts, your auto loan or even your mortgage to reduce your overall monthly payments, then apply any savings gained from that consolidation to your savings goals.
   
   
5. Further reduce your spending.
   Now that you’ve gained a deeper understanding of your financial situation, you’re in a much better position to reduce your spending even more, for example:
   • Look at your spending in non-fixed categories like food and utilities. You can adjust the thermostat a few degrees; trim your grocery bill by planning meals in advance; use coupons; and take advantage of your favorite grocery store’s loyalty program.
   • Take a closer look at non-essential expenses like entertainment and subscriptions, as well as services like lawn care and car washing, as examples.
   • Consider removing online shopping apps to avoid impulse purchases.
     
     
6. Look for ways to boost what you’re putting in.
   Consider other ways you can amp up your savings potential.
   • If your schedule allows, consider taking on a part-time job or picking up extra hours at your current job.
   • Look around your house or sell items you don’t need or no longer use.
   • File your tax return early if you anticipate getting a refund, then put the refund into your savings.
   • Put any other unexpected funds, like a bonus or a financial gift from a family member, into your savings as well.
     
     
7. Consider the right savings vehicles based on your goals.
   Once you’ve gotten a handle on your spending and established good habits around saving, it’s time to consider short-term goals, like an upcoming large purchase or a bucket list vacation, versus long-term goals, like retirement. Where you choose to save and invest your money — whether a money market account, certificates of deposit (CDs), or a traditional savings account, will vary based on your short-term versus long-term needs.
   
   BONUS TIP: Don’t forget to celebrate!
   We all enjoy positive reinforcement for “good” behavior, and it’s important to commemorate establishing good savings habits. Whether it’s a monthly massage or a weekly latte, don’t forget to reward yourself for establishing great savings strategies!

Where to keep your savings.

The best place to keep your savings depends on the amount of money you have to save, your long- and short-term financial goals, and how soon you’ll need to access your money. You may also be able to earn interest on your savings, helping your money grow faster.

Creating a savings strategy and sticking with it will put you in a better financial position to manage whatever events life may bring your way. To open a new savings account or talk to someone about the best savings vehicles for you, open an account online, visit your local Commerce branch or contact us at 833-518-3458.