In recent years, there has been a growing trend of “soft saving.” This refers to a less restrictive and more flexible method of saving money than traditional methods, such as setting up a savings account or investing in stocks or bonds.
There are several reasons why soft saving has become so popular. One reason is that it is more accessible than traditional methods. With soft savings, you can save money without making a large initial savings deposit or committing to a long-term savings plan. You can also save money without changing your lifestyle or making any major financial sacrifices.
With soft saving, you can choose how you want to save your money and how often you want to save. You can also choose how you want to spend your money, whether you want to withdraw and spend it immediately or save it for a rainy day.
How to Soft Save
Soft saving can be achieved in several ways. One approach is to use a financial budgeting platform such as Credit & Debt, which allows you to monitor your expenses and create a personalized financial.
Another way is to use a round-up app that automatically transfers the difference between your purchase and the nearest dollar to your savings account. For instance, if you buy a $2.50 coffee, the app will round it up to $3 and transfer the additional $0.50 to your savings account.
You can also automate your savings by scheduling regular transfers from your checking to your savings account. This ensures that you save money regularly without even thinking about it.
Additionally, setting up a savings goal and tracking your progress can help you stay motivated and on target toward achieving your savings objectives.
The Importance of Monitoring Your Credit While Soft Saving
While soft saving is a great way to save money, staying on top of your credit is also essential. This is because your credit scores can have a significant impact on your financial future.
Your credit score is a number that lenders use to assess your creditworthiness. It is based on a number of factors, including your payment history, the amount of debt you have, and the length of your credit history.
With a good credit score, you can qualify for loans and receive a lower interest rate on loans, saving you money in the long run.
Monitoring your credit with MyScoreIQ services while saving can help you make sure you are on track to reach your financial goals. It can also help you identify any potential inaccuracies in your credit report, which can negatively affect your credit score, and take steps to address them.
Bottom Line
Soft saving is a great way to save money without making a major lifestyle change. It is also a convenient and flexible way to save money.
It also is important to monitor your credit while you are saving to ensure that you are on track to reach your financial goals. Sign up for a credit monitoring service if you need help staying on top of your credit reports and scores.
MyScoreIQ credit monitoring services provide FICO® Scores and can alerts you to changes to your credit report and possible suspicious activity.
