6 painless ways to build savings in 2022

If you’ve tried to build an emergency fund or other savings in the past but never saved more than a few hundred dollars before withdrawing most of it for an emergency, don’t give up. At least you tried. And you can try to build savings again, hopefully succeeding this time.

Allocating money to savings in your budget is a good place to start. But that’s not the only way to build a savings account that gets you through a financial pinch or a big emergency expense.

Sign up for a payroll deduction

If you sign up for your employer to deduct a specific amount from each paycheck and deposit it into your savings account, those regular deposits will add up quickly — and you won’t be tempted to spend the money on something else.

Employer 401(k) match

Does your company offer an employer-sponsored 401(k) retirement plan? If so, make sure you enroll, even if your initial contribution from each paycheck is only a small amount. You can always increase the amount later.

Sell stuff

One way to grow your savings is to sell things around the house that you no longer use or need. Maybe you’ve got an extra sofa in a spare room that no one sits on or exercise equipment that you no longer use because you’re back at the gym.

Open a bank account with a sign-up bonus

Did you know that many banks will pay you a bonus ranging from $100 to $350 just for opening a checking or savings account and meeting the offer’s requirements? For example, you may need to make a minimum deposit or a specific amount in direct deposits within 90 days.

Apply for a credit card with a sign-up bonus

Many credit cards offer a cash back sign-up bonus ranging from $100 to $750 if you charge the required amount to the card within the first 90 days after opening. Generally, the higher the bonus, the more you have to charge, and there may be an annual fee.

Enlist a savings buddy

Nothing helps you save like having a friend to help hold you accountable. Ask a friend who also wants to build savings to be your savings buddy. Then check in regularly with a progress report.

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