Ingenious ways to boost your savings – words Al Woods
Money saving is a habit that many wishes, but a few make it a reality. These are many reasons and challenges that obstruct many from undertaking the saving culture for future investment or use. The trick to approach and land on better saving is by pretending you never had that money from the start. The following highlighted points and strategies shade more lights on achievable and realistic ways to increase your savings without much hustle.
Get hidden savings account
The first thing is to find a secret savings account, this should not necessarily be a bank account, but wherever it works for you such as a drawer, middle of car console, or a jar. You can start small even with the daily pocket change, make it a habit and you will be astonished by the amount after a while.
Yes, transacting in one bank is a great idea more so to those who do online banking. The biggest challenge is that even determine savers can be tempted to withdraw the savings if they are easily accessible for spending such as bill cover up. The best way is to have a savings account that is a little bit complicated to access the funds.
Maintain spending habits
Commonly, most people start to pump up their spending after they make their last debt payment. This should not be the way to go, instead, divert the money you have been paying into savings without changing your spending habits. This way, there will be no change in your budget yet paying yourself rather than the creditor.
Divide your earnings
Divide your money or income into portions with a specific use. This will give a clear structure of your money usage while allocating some percentage to all your needs. You will be able to have money for paying a debt, saving, and spending. It is not advisable to save the whole amount as this will make you feel deprived. Money portioning can be attested by Lifepoints and other survey sites giving testimonies of current great people who were nothing at the start.
Having a round-up account is a sure way to have automatic saving. After the realization that people need to be encouraged to save, financial institutions cleverly came up with an idea of whenever you pay a bill or make a purchase with your debit card, the amount is rounded up to the nearest dollar, and the difference is channeled to round up account (merely a savings account).
Cutting recurring expenses
Last but not least is about cutting on your recurring expenses. A quick review of credit and the bank statement of monthly recurring charges will reveal a list of costs you need no more or can do without them. Such expenses when cut should not interfere with your daily life and these include but not limited to unused gym membership and service subscriptions such as magazine and music streaming. The cut amount is channeled to savings.
Despite all the above mentioned ways, aiming at the same goal, make some savings, they do not necessarily work for everyone, but select those that work well with you and apply them to realize an automated voluntary saving culture. These saving ways are not inherited or linked to anything but developed during one’s lifetime.