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Ep. 133 – Cash Clarity: Make Your Savings Account Actually Effective

Time to level up your money game: stash your cash in a cool separate bank to dodge impulse buys, split into emergency and goal accounts, and drop in a few bucks monthly – even just a fiver. Let’s make those dollars flex!

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Make Your Savings Account Actually Effective

This is the Your Money Your Life podcast, Cash Clarity Edition, where you get a micro money tip so you can get the money when in five minutes or less. I’m your host, Aimee Cerka.

After over 10 years in the personal finance industry, and multiple personal financial and medical crisis, I was fed up with the lies that are being shouted from the rooftops, by the Gurus and the media. So now I make money simple so that you have the confidence that you need to, to handle the money thing without sacrificing your lifestyle.

If you’re a female entrepreneur who wants to make more money and are ready to eliminate fear, stress, struggle, frustration and guilt, from your finances, in all the areas that they affect. You’re in the right place. Welcome. I’m so glad you’re here.

Maximizing Your Savings Account

So how do you make your savings account actually be effective for you? Over the last couple weeks, we’ve talked about a couple different things when it comes to savings, how you don’t need to save everything for a rainy day. And then last week, we talked about how you should be saving to be smart in 2024, like how you do actually create that financial security if we’re not saving everything for a rainy day.

So now that you know, kind of where you need to be and what you should be doing. How do you make sure the money that does need to be in a savings account is actually effective. There’s one simple thing, which I’ll tell my clients to do, and it makes all the difference. But let’s talk about it.

If we haven’t met yet, my name is Aimee Cerka. I am the money go-to money confidence coach for making money simple with straight to the point strategies all so you can make more money in less time.

The Power of Separation

So what is the crazy simple thing that we do to make your savings account like actually work for you have your savings account are two separate bank that most of us when we open a checking account, you know, they make you open the mandatory savings account, you don’t have to close that if you don’t want to. I know mine just kind of sits there. I don’t really keep anything in that account.

But when you put your savings at a different bank, Discover is the one that I use and love for my savings accounts. They’ve just always have done well with our interests that you are earning some interest on your savings accounts. And the processes with transferring money etc.

Always was simple customer service, great to deal with. Discover highly recommend them hands down. But the key is when you separate this and you put your savings account at a separate bank is that one layer removed, so that you can do what you need to it’s still accessible if you needed it, right.

Out of Sight, Out of Mind

And I have a checking account with discover that way, you know, like I can get to the money instantly instant transfer. Not a problem, right. But you can get to the money still. But it’s that one layer removed. And it’s out of sight out of mind.

I have a client who did this, it’s been a couple years now this is the only thing she did. She moved her savings account to a separate bank, she saved $400 in six weeks, just by doing this, they had not gotten close to that previously. Because when you move your savings account and it’s at the same bank that you have your checking account, we all have the online banking and how simple is it when you’re out doing something just to do a quick transfer, right?

Oh, I need some cash checking accounts Loke Quick Transfer, so you’re not actually saving, you might as well just leave the money in your checking account. That’d be part of your cushion. That’s a whole ‘nother thing on financial security and why you should have that.

The Two-Account Strategy

But the simple thing you have to do to make your savings account actually effective, put it at a different bank. That little step out of sight out of mind, it makes all the difference. Quick note, have at least two savings accounts one for your contingency fund.

A lot of people call this your emergency fund, but I don’t like to plan for an emergency. And then kind of everything else. This is where your travel savings can come in home repairs, auto repairs, auto registration, kids being expensive, you know, school stuff, annual expenses, all those things.

The other account can be a catch all but removing that contingency fund and having its own designated spot plus your everything else find out a separate bank at a minimum but I always recommend you have at least two and that you’re adding to it on a continual basis.

Consistency is Key

If things are tight, even if it’s just like $5, $25. It doesn’t have to be a lot. But you’re going to create that habit and that consistency over time and you’re going to see long term results because the habit is what is sustainable.

Alright, that’s what we’ve got for now. Let me know if this was helpful below. We’ll see you next time.

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Aimee Cerka
Aimee Cerka

The Money Confidence Coach - She helps motivated women, like you create the happiness, family life, financial security, and long-term wealth they deserve. Create unstoppable finances so that when the next curveball is thrown your way... You're prepared. Click Here to Learn More

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