Q:

What are the best ways to save money?

A:

Quick Answer

The best ways to save, according to a Managing Your Money section of the Bank of America website, include making plans for spending and saving and setting spending priorities and savings goals. Saving money effectively requires keeping records of spending so there is detailed accounting for monitoring income and saving plans.

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Full Answer

The best ways to save money require planning and employing strategies to make saving plans more convenient and easier to follow. Separating savings goals into short-term and long-terms categories helps when choosing the methods and types of savings accounts that work best, explains Bank of America.

Short-term savings are best achieved through one or more of three savings vehicles. Regular savings accounts offer easy access and often have lower requirements for deposit amount. Money market savings accounts offer typically higher, yet variable, interest rates. Certificates of deposit offer fixed interest rates over a pre-established period of time, notes Bank of America.

Automatic transfers allow savers to deposit funds into a savings account by a predetermined frequency and amount to make saving money easier. Account holders can establish an automatic transfer system to divert funds from a checking account to a savings account at a specific time or when an account reaches a specific balance, states Bank of America.

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