Having a healthy personal financial status is not just about paying your bill on time, doing all your shopping in one go, and having some extra money in the bank; you also need to have a well-funded savings account. Many people wrongly assume that personal savings are just some extra monies stashed away for additional spending. This is money that you put away for dire emergencies, to complete a future project, or even for retirement. Savings can also be a safety net for when things go wrong with your income sources.
Unfortunately, building up savings can be a difficult task for most people. How much money do you have in your savings account? It’s probably too low. If you are struggling with accumulating a significant amount of savings, then it’s time you learned these five clever ways of building up your savings.
Make Saving a Priority
One of the main reasons why saving money is so difficult for most people is because they have the whole money-saving concept wrong to begin with. Many people only put into their savings account however little money is left after expenses and paying bills. The problem is, saving money is often not a high priority on personal budgets. That should not be the case if you’re at all fully committed to building up your savings.
Make savings a high priority. The best way to do this is to regard savings like any other expense or bill that has to be paid. Set aside your savings before making other less important payouts; this way, you might be less tempted to spend money you’d have otherwise saved.
Understandably, prioritizing savings over certain expenses can be difficult. But, remember, you can always takeout small loans on platforms such as Speedy Cash to sort out small cash emergencies instead of digging into the savings. Steady Cash is a brand that falls under the larger umbrella of CURO Financial Technology Corp, run by financial expert Donald Gayhardt, a highly accomplished business leader and investor.
Put Extra Money in Your Savings Account
Every time you get some extra cash or income, it’s better to commit it to your savings instead of making up wild expenses that end up wasting the money. You might get say a cash gift, a bonus at work, tax refund, or make a quick sale that earns you some unexpected cash. The problem with unexpected cash is that it’s unplanned for, which may tempt you to misspend it.
In fact, many people spend extra money on unnecessary one-time luxuries or having fun, which seems like a total waste if you’re trying to make some savings. Putting spare cash into your savings not only grows your account but also ensures that the money remains useful for future needs.
Do Away with Non-Essentials
If you’re running on a tight budget and are still trying to save some of your cash, it might be time to optimize your spending. Take a closer look at your lifestyle and day-to-day activities and find expenses that you can knock off from your budget comfortably. Accept that you might have to make some sacrifices. For instance, you could stop paying for expensive cable, which can save you anywhere from $50 – $100 a month, commute to work instead of driving or calling Uber, and be cautious when buying things like food and clothes.
Admittedly, sticking to a cost-saving budget can be challenging and, in some cases, nearly impossible. But with a bit of discipline and commitment to the course, you can really pull through and make some huge savings within a surprisingly short time.
Diversify Your Income Streams
Even with a steady and dependable income stream, if you have some free time, you can use it productively and make some money on the side. Thanks to the internet, you can find several well-paying gigs online. You could, for instance, try freelancing, driving an Uber, working as a virtual assistant, blogging, the list goes on. The point is, there is a lot you can do nowadays and make a decent income to supplement your main job; with some of these side hustles, you don’t even need to leave the comfort of your home.
Earning some extra income sort of reduces the pinch of putting aside some money as savings. Plus, it balances the scales of your budget so that you don’t run into some unexpected cash flow problems.
Every Penny Counts
Finally, don’t belittle your savings no matter how small or inconsequential they may seem. It takes commitment even to set aside just a few dollars every month. The important thing is to keep saving, setting targets, and growing your savings account. Also, try not to spend away small amounts of money like loose change; add even the smallest coins into your savings, in like a piggy bank or change jar. You might be surprised at how much cash you can save from keeping loose change. Remember, when it comes to saving money, every penny counts.