Whether you’re interested in saving money for a family vacation, your children’s college funds or an early retirement, simply continue reading to discover 5 easy tips which will help you significantly increase your savings funds within a few short months.
How to save money: 5 Easy tips to follow
1. Set up a monthly automatic payment to a second bank account
In order to ensure that you save a proportion of your disposable income, it’s well worth creating a second bank account and creating a reoccurring automatic payment which transfers money from your primary bank account to a secondary bank account each month.
As if you keep all of your disposable income in one bank account, you may be tempted to spend all of your disposable income on luxury items which you don’t need such as restaurant meals and cheap fast fashion.
2. Draft up a monthly budget in order to stay in control of your spending
If one of your primary goals is to save money for your future, it’s highly advisable to draft up a monthly budget, which accounts for every cent which you earn. To create a monthly budget, simply work out how much you earn each month and how much money you spend on each expense. As an example, write down how much money you spend on groceries as well as on utility bills such as your power bill.
Once you’re aware of how much you spend on each facet of your life, you’ll be able to find areas, where you may be able to cut down on your spending, in order to significantly increase your monthly savings.
3. Focus on your long-term goals
If you don’t have any long-term goals to save for, you’ll be far more likely to waste a large proportion of your disposable income on wasteful items such as expensive takeaway coffees, movie tickets, and restaurant meals. So it’s useful to be clear on what it is that you’re saving for. As examples, you may be interested in saving to put your children through college or to fund an early retirement.
4. Invite your friends and family members around for a potluck meal or barbecue
If you frequently spend hundreds of dollars per month on dining out with your family members and friends, you can easily save a few hundred dollars per month by choosing to host your family and friends for a cheap potluck meal or a barbecue.
5. Make sure that your bank accounts offer a high-interest rate
It’s definitely worth browsing the websites of several banks, to make sure that your current bank accounts offer you a competitive interest rate. If your current bank accounts offer low-interest rates, it’s well worth swapping banks as you could be potentially robbing yourself of hundreds of dollars of interest per year. Depending of course on how much money you have saved in your bank accounts.
So if you’re serious about saving for your future, it’s well worth following the 5 simple budgeting tips listed above in order to save for your long-term goals!