Boost Your Savings In 3 Easy Steps

April 13, 2018 at 12:21 PM Leave a comment

Saving can be hard when you’re constantly faced with financial temptations. Don’t let your expensive desires stop you from creating your very own savings. Keep the following tips in mind, and you’ll find it easier than ever to put away a little cash.

  1. Use a budget.

From Kevin O’Leary from Dragons’ Den to Suze Orman from CNBC, financial experts point to the budget as the number one financial tool everyone needs. It’s an educating device that gives you a bird’s eye view of your finances, showing you how much cash you spend in the typical month. By comparing this number to how much money you make, you can determine if you’re on the right track.

It doesn’t matter if you use a pen and paper, an Excel file, or an app that automates your budget for you. Your budget can be as high-tech or low-tech as it needs to be in order to meet your lifestyle. While the method isn’t important, its accuracy is.

Tally your expenses with extreme prejudice, down to the very last penny. This creates the most accurate representation of your spending. It can be distressing to see just how much you spend on takeout in a single month. But that feeling of discomfort’s a good thing. It’s an excellent motivator when you want to start saving.

  1. Shop around for a savings account.

Redirecting the obscene amount of money you spend on pizza and shawarma into savings is a great first step towards establishing your emergency fund. But just how Everest isn’t climbed with a single stride, your mountains of riches isn’t made with a simple savings account.

Your savings should be separate from your checking account. When you allow the money you use to pay bills mix with the money you intend to use on unexpected repairs, vacations, and retirement, things get confusing. It’s all too you easy to spend dedicated savings on something else.

When you’re ready to separate your savings from your checking, don’t be satisfied with the basic savings accounts offered by your banks. Most of these basic savings accounts offer an interest rate that’s lower than the rate of inflation. If your savings are meant for long-term goals like retirement, these basic accounts actually limit the purchasing power of your dollar in the future.

Do your research. High-interest savings accounts often come with terms and conditions that might make them impossible at the start, but they’re worth working towards. While you’re at it, check in with other accounts like 401(k)s. These tax-deferred plans are ideal for retirement savings.

  1. Supplement responsibly.

Don’t let other people fool you. Savings can be difficult to build, and it can take you longer than you expect to put away enough to qualify for specialized accounts. While it’s true every dollar counts, it’s their combined sum that really makes the difference. If you can only put away $10 every week, it might take years before you can cover unexpected expenses on your own.

Until you’ve had the time to build up significant savings, an installment loan is a great backup when bills and repairs outnumber what you’ve saved. You can find quick installment loans online from lenders that operate almost entirely over the Internet. By processing applications and issuing installment loans online, these lenders eliminate many of the complexities that can delay financial assistance. When help arrives quickly, you don’t have to waste any time worrying about how you’ll pay your bills.

Having the freedom to pay surprise bills and other unexpected expenses on time is one of the luxuries of having savings. But like so many other freedoms, they’re often hard-fought.Remember this when you start at step one. Buckle down and bite the bullet by creating your very first budget.

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