Zen Penny

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Kick Start Your Savings With Microdeposits

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We live in a world of microtransactions. Vending machines, convenience stores, the check-out aisle at your local supermarket, and even video games, we are constantly being bombarded with convenient ways to part with our loose change. To counter this, I have begun making microdeposits into my savings account.

My Orange Savings account with ING makes it fast, easy, and free to transfer money from my linked checking account. Everytime I end up spending money buying something small on a whim, I try to deposit that equivalent amount in my checking account. I set my minimum deposit to be around $2 regardless of whether I spent that much or not because it’s nice to see the tangible difference a couple bucks here and there can make.

This method works even better if I preemptively deposit money anytime I am tempted to run out for a candy bar or a greasy value meal. This act alone forces me to take a few seconds to reflect on whether I absolutely need whatever it is I want to buy. The answer is usually no but it doesn’t always prevent me from buying it anyway. But at the very least I made a small contribution to my financial future.

Microdeposits offer three great benefits to me:

1. It’s a great way to supplement my savings account.

2. It often serves as a preventative measure against making small purchases.

3. I don’t feel like I am denying myself because I can get away with a few impulse buys as long as I pay myself first.

Of course, this process is not meant to replace an automatic savings plan. Also, this can be quite time consuming and requires a bit of discipline. So I will probably phase this habit out once I have a better grip on my budget. But so far it has served as a great way to kick start my savings.

Written by Zenpenny

April 1, 2007 at 2:55 pm