How to build strong savings habits

We all understand the importance of saving money but integrating it seamlessly into our daily lives can be challenging. By prioritizing savings, setting clear goals and leveraging tools that automate the process, you can establish a habit that fosters financial security over time.

In this article, we’ll dive into why regular saving matters, explore strategies to make it second nature, and introduce practical tools to help you reach your financial aspirations.

Why consistent saving matters

Financial stress is a common concern, with many individuals worrying about their ability to handle unexpected expenses or achieve future goals. According to a survey by the American Psychological Association, 66% of adults are stressed about money.* The research also found that 43% of adults reported that saving enough money for things in the future is their main source of stress. If you’re one of those Americans, you know that these feelings can have a significant impact on your mental and physical health.

Establishing a regular savings habit not only provides a safety net for emergencies, but empowers you to plan for significant life events such as purchasing a home, funding education or enjoying a well-deserved vacation.

The encouraging news is that you don’t need to set aside large sums to make a difference. Consistently saving even small amounts, like $10 or $20, can accumulate substantially over time, leading to greater financial stability and reduced anxiety.

Strategies for making saving a habit

While saving money isn’t always easy, implementing simple strategies can help you build strong habits that endure. Starting with small, manageable amounts and gradually increasing them can lead to significant growth over time.

Find a budgeting method that suits you – choosing a budgeting system that aligns with your lifestyle is crucial. Not every approach is right for everyone, so finding one that keeps you motivated and accountable is key.

Some effective budgeting strategies include:

• 50/30/20 rule: Allocate 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment.
• Pay yourself first: Prioritize savings by setting aside a portion of your income before addressing other expenses.
• Zero-based budgeting: Assign every dollar a specific purpose, ensuring all income is accounted for.
• The envelope method: Use cash for different spending categories to limit unnecessary purchases.

Leverage smart tools to enhance your savings

In today's digital age, numerous tools can assist in automating and simplifying your savings efforts. One such tool is the Citizens Savings Tracker®, available exclusively on the Citizens mobile app. This product has features designed to help you build good financial habits — it helped save our customers $26.37 million in the first year, and offers several other benefits to help you stay on track with your financial goals:

1. Smart Save³

This feature analyzes your spending and income patterns to identify extra funds that can be safely transferred from your checking to your savings or money market account. By understanding your financial habits, Smart Save makes automatic transfers without compromising your daily needs, ensuring a seamless and efficient saving process.

2. Round Ups⁴

With Round Ups, every debit card purchase is rounded up to the nearest dollar, and the difference is transferred to your savings or money market account. For example, if you spend $4.50 on coffee, an additional $0.50 is moved to your savings. This method turns everyday transactions into effortless saving opportunities, allowing small amounts to accumulate over time.

In 2024 alone, Citizens customers were able to save $2.3 million by using Round Ups and $1.1 million through Smart Save. Their average savings goal was nearly $1,500 for the year. The most popular savings goal categories were vacations, home or car funds, home improvement and education savings. So what appeared as seemingly small individual transactions made a big difference over the year!

Bonus tip: Customers can add a booster and round up to $3 or $5 and add to each transaction so you can save even more!

3. Pay Yourself 1^st

Automatically set aside a portion of your paycheck or other recurring deposits to your account to transfer directly into your savings goals. By prioritizing your savings before other expenses, Pay Yourself 1^st ensures that you're consistently working toward your financial objectives.

By integrating these features into your financial routine, Citizens Savings Tracker® simplifies the saving process making it more manageable and tailored to your individual needs.

Initiate your savings habit today

Improving your savings habits doesn't require drastic changes. Small, consistent steps, coupled with the right tools, can significantly impact your financial well-being. Whether you're just starting or looking to enhance your current strategy, leveraging features like the Citizens Savings Tracker® can provide the structure and automation needed to achieve your goals.

Take control of your financial future by embracing these tools and strategies today. With dedication and the right support, you can turn your financial aspirations into reality and enjoy greater peace of mind.