In these troubled financial times, the absence of a savings account can spell certain trouble and endless worry for the unprepared consumer. Indeed, having a lack of adequate savings can mean the difference between being able to make big ticket purchases, such as a new vehicle or university tuition, or simply struggling to survive an unexpected reduction or loss of one’s income.

Yet, in today’s climate of impulse spending and increased reliance on credit, many consumers do not understand how to build a savings account. They may realise the importance of savings, but once the account is opened they are at a loss as to how to add to it. Below is a list of steps that can get anyone’s savings on track and steadily growing.

Build a savings account by taking advantage of a direct deposit

One way to easily build your savings account is by setting up a direct deposit for your  pay. Many employers allow you to split your pay into different accounts and it can pay big dividends for you if you follow through on it. With direct deposit, your chosen pay amount will be deposited into your savings account as soon as the money lands, directly bypassing you and your urge to spend the money on frivolous purchases. You can also arrange for direct deposits to be split between a savings and a debit account if you require more spending money.

Have a chat to your employer to see if this is possible. If not you could think about setting up an automatic transfer the day after you’re paid to make sure you aren’t spending that cash.

Build a savings account by arranging an automatic transfer from a debit account

As alluded to above, another way to build your savings account is by setting up an automatic transfer from your debit account to your savings account. This works similarly to a direct deposit, but instead of getting paid directly from your employer’s bank account to your savings, it buckets money in that was already stored in your debit account into your savings account. Automatic transfers are preferred by those who either do not have the option of direct deposit with their employer or who need to first budget their money in a more flexible account such as a cheque or debit account. The good thing is you can specify the amount and date of the transfers to suit your needs..

Build a savings account by depositing one-off lump sum payments

In the event that you’re lucky enough to receive a one-off lump sum payment, you can deposit the money into their savings account for a quick boost to their balance. Lump sum payments most often come from work bonuses, tax refunds, consumer rebates or birthday and holiday money from loved ones. While it may be tempting to spend such unexpected gifts, they can put the user ahead of schedule on their savings goals when retained instead. If you’re taking advantage of compound interest, then this one works well!

Build a savings account by budgeting and saving extraneous funds

Another simple but effective means of adding to one’s savings regularly is to craft a budget and spend nothing outside of it. For this tip to work its true magic, users must factor in all of their outgoing expenses as well as their streams of income. After expenses have been subtracted from the total income for the month, then the leftover amount is instantly transferred to the savings account. This suggestion is perhaps the most difficult to implement, but by installing a reasonable entertainment fund, users should have no problems moving the rest of their money into savings in an effort to cut down on impulse buys and unnecessary extra spending.

Growing your savings account is not only a smart financial move, but can be a very rewarding one. By implementing these simple steps, you can start saving money for your goals and emergencies, and enjoy the peace of mind that comes with having a cushion. Remember, it’s important to set a realistic budget, automate your transfers, track your progress, and celebrate your milestones. You don’t have to deprive yourself of the things you love, but rather prioritize what matters most to you. With a savings account, you can prepare for the future and live in the present.