Tips for Boosting Your Savings
Living in a consumerist culture sometimes makes it difficult to properly save money. However, it’s important to prioritize your saving, as it can provide a buffer between you and your next financial burden. Use these daily money-saving tips to help boost your savings.
Make a budget
Organize your monthly expenses into a workable budget so you have a clear picture of where your money is going. Make sure to create your budget with a percentage of your income going to necessary items like rent, gas, food, etc.
Plan on saving money
With your budget, plan to save a percentage of your income toward your savings. This could be anywhere from 10-15%, but you can set it how you please. If you’re having trouble hitting this mark, try taking a step back and seeing where your biggest expenses are, and work toward lowering then.
Digit is a pretty neat app that will completely automate your savings. After linking your bank account, Digit will automatically transfer small amounts from your checking account into a separate savings account.
Collect spare change
How many times have you taken the change out of your pocket and placed it somewhere only to lose it? Well, that change can quickly add up over a period of time. Try collecting any change you have in a jar, and once it’s full, redeem it at a Coinstar machine and deposit that cold hard cash into your savings.
Switch to cash for daily expenses
Studies have shown that swiping a debit card does not have the same psychological effect as when you take cash out of your wallet to buy something. By switching to cash for your daily expenses, it forces you to be more mindful of your spending, helping you cut back on impulsive buying.
Pay down debt
High-interest debt is one of the biggest culprits when it comes to eating up your savings. If you carry a balance on your credit card, you may be surprised as to just how much interest you are being charged. By paying off debt, you are freeing up income in your budget, which can be used to prioritize savings.
Cut back on eating out
Changing the way you eat can have a major benefit to your overall savings, not to mention it being good for your health as well. If you’re eating out just once every day, that can quickly add up to more than $50 a week, or $200 a month. Take it as an opportunity to brush up on your cooking skills by making your own meals.
Wait before you buy
One of the worst things you can do with your money is making financial decision without thinking about it first. A good way to ensure that you’re spending your money wisely is to follow the “think before you buy” mantra. Ask yourself if the purchase you’re thinking of is a wise decision. Give it a night or two to mull over, then make your decision.