5 Ways To Start Bumping Up Your Savings

Whether it’s for a short term goal, like saving up for a holiday or a wedding, or you want to build a long term financial cushion or nest egg to live a little more comfortably, saving is one of the best habits you can pick up.

However, sometimes it might feel like there isn’t much money left over to save after you take care of your bills. Here, we’re going to look at how you can make a little more room and get a little more consistent, ensuring that you’re saving as much as you can, without draining your budget too much.

Pay Yourself First

If you find yourself saving over much less than you would like, simply because you spent more than expected since your last paycheck, then you should try paying yourself first. This means working out from your budget sheet how much you can save with each paycheck and setting it aside before you spend any more. Otherwise, it’s all too easily to overspend yoru way out of any savings.

Audit Your Spending

There might be more room to find in your spending, too. You don’t necessarily have to give up everything you enjoy, nor touch your essentials. However, taking a look at your subscriptions and recurring charges once every quarter could make sure that you’re not paying for anything you don’t use. Meal-planning is another powerful cost-cutter, reducing your impulse grocery shops and takeout meals.

Join A Credit Union

It’s not just about how you reduce your spending, but where you put your money, as well. If you’re currently only using a bank, then you might want to consider opening a checking account with a credit union. These typically offer lower fees, better interest rates on savings, and more affordable loans compared to traditional banks whenever you might need them. It might not make a huge, immediate different but, in the long-term, it can make it significantly easier to meet your savings goals.

Minimize Your Debt

Debt slowly drains your income, reducing the margins that you can save within. Start tackling your debt with a repayment plan, starting with your credit card balances first. That way, you can free up the cash that would otherwise go towards making interest payments. The higher the interest, the more committed you should be to clearing the debt before it saps your finances.

Set Clear Goals

Saving money for any reason is a good idea but, when you have a specific goal in mind that you’re working towards, the incentive of reaching that goal, as well as the momentum in counting donw until you reach it can make you a lot more likely to prioritize saving when you might otherwise spend. If your goals are on the bigger side, breaking them into smaller milestones can help you stay extra motivated.

The vast majority of us can stand to save a little better than we do now, we just need the right tools to help us do that. The tips above can help you do just that.