Are you new to the START SAVING Challenge? Learn about it HERE & sign-up.

This post is part of the START SAVING Challenge. Make sure to read previous posts.
Day#2: Your Accountability Plan

START SAVING Challenge: Day #3

Today's easy saving task:

• Open a savings account to stockpile all of your new savings.

Welcome to Day #3 of the START SAVING Challenge! Today is going to take a bit of work, but it will be worth it. For today's easy saving task you are going to open a new savings account. The purpose of this task is to create a place where your can put the money you are going to save from each paycheck. For this challenge it's very important you follow the step-by-step instructions, as you have to be careful on what kind of savings account you open.

I recently took another Savings Challenge from the very talented Tiffany “The Budgetnista” Aliche over at thebudgetnista.com. She made it super easy to find a free, no-fee, online-only savings account. I had such a great experience with it that I am also going to recommend the same way I opened my own online savings account. The savings account I am going to recommend you open for the challenge is an online-only savings account. This is the same process The Budgetnista recommends & just love it! Don't worry I will walk you through the steps!

WHY CHOOSE AN ONLINE-ONLY SAVINGS ACCOUNT?

• It's FREE & {should be} easy to set up (Make sure to choose a free, no-fee Savings Account from a bank like CIT Bank)
• You can transfer as little or as much as you want into your free Savings Account. Transferring $5 to your new savings account is just as easy as transferring $5,000. Trust me, I know from experience.
• Opening an online-only savings account makes it a little more inconvenient to access. It usually takes about 2-3 business days to transfer money from your online-only account (your Savings Account) back to your regular checking account at your physical bank. Try to open a savings account at a destination that is different from your regular checking account. If you don't, this might allow you to use your regular debit card to spend your hard earned savings – we don't want that!

IF YOU LIVE OUTSIDE THE UNITED STATES OR CAN'T OPEN AN ONLINE-ONLY SAVINGS ACCOUNT:

I always want you to do what is best for you, so if you are not comfortable opening an on-line account – completely ok! You can still complete the challenge. Opening a savings account at your local bank or credit union is totally fine as well. The only suggestion I have for you is to try to open it at a different facility than your checking account. This keeps your Saving & Checking accounts separate and it won't be as easy for you to spend your savings. If you do decide to open a savings account at your local bank make sure:

• It's FDIC-insured. FDIC stands for “The Federal Deposit Insurance Corporation.” This is a United States government corporation and it provides deposit insurance. This guarantees the safety of your deposit at member banks – currently up to $250,000 per depositor per bank.
• It doesn't have a minimum balance requirement.
• It has NO fees
• It offers the highest interest rate available to you. Try comparing different interest rates when searching for a savings account.
• ALWAYS check to make sure that it does not produce a hard inquiry BEFORE you apply. A hard inquiry can stay on your credit report for up to 2 years and can negatively impact your credit score anywhere from 6-12 months.  Make sure you ask before applying.

I want to be able to show how easy it is to start saving. Remember, a little goes a long way. Every dollar adds up and the more you save, the more you will finally understand YOU CAN DO IT! A little later in the challenge I will show you how to cut expenses so you can save even more.

STEP-BY-STEP TASK INSTRUCTIONS (Day #3 Recap)

1. Head on over to this blog post and review the online-only savings account options / or open one at your local bank or credit union.
2. Choose a savings account that offers the highest interest rate possible, such as the account offered by CIT Bank.
3. Apply and open the account – this process can take a few seconds or a few business days – so make sure to open the account today so you have it ready for the challenges coming your way!

NEXT STEPS:

• Think about how much you WANT  to put into your new savings account – remember it doesn't have to be huge. If you can't save a ton, try starting off with $10 per paycheck. When I first started saving I literally put $5 per paycheck into my savings. No amount is too small. The amount doesn't have to be set in stone – YET.

Do you know someone who is having a hard time on their saving journey? Make sure to share your new knowledge with them and use the sharing buttons to spread the wealth!

[tweetthis twitter_handles=”@thebudgetmom”]Today I am opening a Savings Account & taking action to save successfully. #StartSavingChallenge[/tweetthis]

THAT'S IT friends! You just made a huge step in your saving journey! Everyone has to start somewhere – we all start at the beginning and the beginning is a GREAT place to start! So let's do this! Head on over to MagnifyMoney (or your local bank of credit union), open you new online-only savings account, and share your progress with your accountability tribe. Make sure to share your progress in the private TBM Family group and with me in the comments below! For example: What bank did you choose? I personally use Ridgewood Savings Bank for my online-only savings account.

Not a member of the TBM Family – Join HERE

FIND ME HERE:

FACEBOOK: @thebudgetmom
TWITTER: @the_budget_mom
INSTAGRAM: @thebudgetmom
FORUM: TBM Family

NEW COURSE!

If you have been part of my previous Savings Challenges, we shook things up for 2020. Let’s resolve to have 2020 vision when it comes to seeing how we can become better savers. This year we have 24 savings challenges, two each month. These are designed to be fun. Saving should be fun because you make things easier for yourself. My course will guide you on a year of savings so you will be better off when 2020 comes to a close. Sign up for the Savings Challenge course to kickstart your savings.