Starting an automatic savings account is easy. Back in the “old” days, people paid cash for stuff. You’d carry money around in your wallet, pull out some dollar bills, and the clerk would give you change. At the end of the day you’d have a pocket full of change. Then you’d take the loose change and dump into a mason jar because you didn't want to carry it around with you and you'd forget about it. Over time, that mason jar would fill up with loose change, you'd roll up the coins and then take the rolls to the bank and deposit them into your savings account.
Nowadays, of course, people seldom use cash. Personally, I use my debit card for nearly every purchase I make. Groceries, gas, eating out, whatever...it goes on the debit card.
Now, the mason jar was never your main savings account. But it was nice seeing the coins pile up over time. But, since few people still use cash, the old mason jar is looking kind of empty.
In 2016, I heard about a new app for my phone and I’ve been using it
ever since. It’s an automatic savings method that is dirt simple and it's easy to set up on your phone.
Here’s how it works. You download the app. (A link is provided below.) You link one or more of your bank accounts to this app. (I use the debit card I just mentioned.) Every time you make a purchase, the app rounds up the amount of the purchase to the next even dollar amount. If you spend $7.49, then it rounds it up to $8.00. It then takes that 51 cents and drops that money into an investment fund.
Now, if you use your card as much as I do, the money adds up quickly. Plus, you can designate that a certain amount be transferred into this account each week to augment this account. (That's what I do.)
It’s an automatic savings account that gets automatically invested.No more rolling up the coins and taking them to the bank. You just set up the account on your phone and forget about it.
What you do with the money is your choice. Forget about it and let the money grow over time. Use it as an emergency fund. Make a quarterly donation to your favorite charity. It’s found money and you choose how to use it.
It only takes 5 minutes to set up on your phone, so go ahead and take action on this before you push it aside and forget about it. Just set it up and forget about it.
At the time I'm writing this, the company is offering an incentive for signing up. Use the link below and they’ll give you $5 for setting up your account. Since the fees are only $1 per month, this will cover the first five months of fees for you. I know that’s not a big incentive, and it’s not the reason for taking action on this. But, hey, it’s another $5 that you just put in the mason jar.
One note: if the above link doesn’t work on your computer, then use Google Chrome for your browser or just click the link from within your phone for the $5 deal to work.
Of course, you can still do it the old fashioned way by just clicking one of the jars below: