How to Fast Track Your Savings
Saving sounds like such a simple thing, doesn’t it? Unfortunately the reality is rather different, because not only do temptations get in the way, but unforeseen circumstances have a habit of coming around and biting us on the backside.
It is possible to sidestep these stumbling blocks and help that savings account grow into something to be proud of, whether it’s for a rainy day, or whether you’re saving up for a specific thing, and all it takes is a bit of good old willpower and a little clever thinking.
Budgeting is the way forward
It sounds boring, and yes, it is, but it’s also necessary to help you identify where you can save, and how much you can realistically afford to save. Sit down with a pen and paper, a strong cup of coffee, and figure out how much you have coming in, and the things you have to pay out every month. Don’t forget the necessities of life, such as eating, clothes, and of course a bit of a social life. Be realistic!
Identify how much you can save
Once you’ve created a budget, you can easily see how much is possible for you to save each month. Again, be realistic and put it in a high interest savings account. It’s a good idea to set up a standing order to move this amount of money into your savings every month, usually the day after you get paid. Don’t touch it!
Do you have anything you can sell? If so, get it on eBay! Can you make money through other means, such as another job? Have you figured out how to best manage your withholding allowances through your employer? If so, then go for it. Remember if you’re looking for a second income, you will have to declare this, especially if you’re doing something such as freelancing, as you’ll have to declare yourself as self-employed, and pay tax. A second job will mean more tax paid than on your first job, but it’s still extra cash in your pocket at the end of the day. Everything you earn from these extra means should go in your savings account.
Cut out the unnecessary
Do you have a gym membership that you don’t use? Get rid of it if you can. Are you guilty of eating out a lot, when you could eat in cheaper? Stop it. Do you impulse buy? Cut it out! These are all easy ways you can save, and it’s a case of changing behaviour. Everything you save from this, put it in your savings account.
Be shopping savvy
When you’re doing your grocery shopping, don’t be label fussy, and instead shop for offers. You can cut your grocery bill quite easily by doing this. Also, sign up a coupon app on your phone, and see if you can shop at the places where money offers are on. Again, save what you can.
There’s no magic wand, but it’s easy to find little ways to increase that savings account, if you think a little shrewdly.
Shop for deals and use money off offers.