Being disciplined and making regular contributions to your savings account can be a challenge at the best of times. But, without a dedicated approach, you can pretty much assure that you’ll spend exactly what you earn and end up living paycheck to paycheck. Fortunately, saving money isn’t rocket science, and there are a number of proven strategies both singles and couples can take to boost their savings account and improve their financial position. If becoming more financially secure is a priority for 2015, read on for some easy ways to boost your savings.
Create a Detailed Budget
If you haven’t already done so, it’s essential to create a budget that accounts for all your monthly income and expenses. Only when you can clearly see where all your money is going can you determine where expenses can be cut and other ways savings can be made. Often, these include monthly bills or subscriptions that may not be necessary or where a better deal could be available. A budget is also useful as it will give you a clearer picture of your spending habits and provide insights on financial behaviors that may need to be changed.
Investigate Additional Revenue Streams
If the idea of reining in your spending seems impossible, the only other solution is to increase your income. It might sound daunting, but there are many ways to achieve this. A second job or working longer hours is the most obvious way to bring in more bacon. Many people, however, are turning their hobbies into sources of revenue. For example, if you are crafty, making jewelry, knitwear, or woodwork can allow you to sell these at a market stall or online. For keen writers, a blog with a loyal following can bring in revenue from online advertising. And for those with an interest in investing, it’s possible to earn money by trading on the foreign exchange market after undertaking a course through a reputable provider such as Learn To Trade. These are all examples of real life ways where people with passions have converted their interests into income.
Set up Direct Deposit and a Term Deposit Account
It’s worth allocating a portion of each pay you receive to be directly deposited into a separate savings account that is not linked to your main account. This will make the money more difficult to access and make you, as the account holder, think twice before making a withdrawal. It is also a good idea to set up a term deposit account that rewards you for making no withdrawals within a set period and also offers more generous interest rates.
Plan Your Meals
Food is one of the biggest areas where people spend more than they need to. Between takeaway breakfasts, takeaway coffee five times a week, work lunches, and dining out with friends, people tend to spend a lot of cash on eating. Many people also waste the food they purchase from the supermarket by not eating it before it expires. Try bringing your own lunch to work and take advantage of your workplace’s free coffee. A weekly meal plan and writing a shopping list will help you buy only what you need and minimize wastage.
While saving can be hard, the good news is that, ultimately, we do have significant control over how much we spend. There are many creative ways to reduce spending, boost revenue, and increase the amount you can contribute to your savings account, so why not try some of the strategies mentioned above? If you have other easy ways to boost your savings account, please leave your tips in a comment below.
By planning your meals it would definitely boost your savings! Before, I only went to the grocery without even planning or thinking what would be my meals for the whole week.