10 Simple Tips To Grow Your Savings Account
When it comes to saving money, there’s a lot of complicated advice out there from many people. If you’re wanting to figure out simple, surefire ways to grow your own, however, you have to remember that specific tips and tricks can only be effective if you consider your own circumstances, and how viable these savings tricks are for your own financial situation. Below, some simple tips for you to try to grow your savings account! Whether you’re a student, a full-time worker, or a parent, you’re sure to find a good way to save.
1. Start by creating a budget
Have a good look at how much you’re earning, and where it’s going. Keep a record of your spending, and you’ll start to see how each transaction can add up. From your everyday cup of coffee, to eating out three times a week, you’ll see that these all add up and can really put a dent in your potential to save. By being more aware of your spending, and adhering to a budget, you can get started on growing your savings much quicker, even on a smaller income. Try to follow the 50/20/30 rule, which is basically a guideline on how your budget should look like. 50% of your income should go to non-negotiables and essentials, such as housing/rent, food shopping, and transportation costs. Then, 20% should be put aside in a savings account, and 30% should be for personal expenses, such as entertainment, and other luxuries.
2. Create your own personalised plan
It’s advisable to have at least 6 months of your salary in savings to act as a cushion if something happens. Or, if you’re planning to save for a big ticket purchase, such as a car, or wanting to travel, you also have to save up a substantial amount. It’s easier to break your long-term goals into more manageable goals per month for this. It’s difficult to figure out where to start saving especially if you’re wanting to grow your savings account by the thousands, but you have to consider your personal circumstances. Creating your own budget, and being more mindful of your spend, can help you plan for the future, and cut back on spending on non-essentials.
3. Rounding up your purchases
Have a look at your bank’s savings accounts! It’s best to shop around for the best interest rates, but for another nifty trick that could help you save without much effort, some banks also offer the option to round up your purchases to the next dollar, and to automatically put the difference in a savings account. It’s a quick and easy way to save, and every cent can go a long way in growing your savings account.
4. Use envelope budgeting
It can be easy to overspend if you’re using a debit or credit card. Using cash can actually help you be more mindful of how much you’re spending. If you’re like this, it may be a good idea to use envelope budgeting, where you divide your cash into envelopes for specific budgets, such as food, transportation, and many more. This not only limits your spend because you’re forced to only use the cash in these envelopes, but it helps you be more mindful too.
5. Meal planning and meal prep can go a long way
Eating out can become really costly, especially if you do it too frequently. Plan your grocery shopping, try not to buy anything that isn’t on the list, and you’ll find that you’ll not only save time and money by being mindful of what you’re buying, but it also translates to healthier meals for you and the family.
6. Look for deals for your phone
Monthly costs for phone plans can actually be expensive in the long run, especially if you are paying for a large amount of data and all the bells and whistles that come with a new phone. If your current phone is still working and functional and has been paid off in full, it may be a good idea to look for SIM only plans, which are not only cheaper each month, but also provide you with a good amount of data for less.
7. Be mindful of your utility bills
While using water and electricity is a given, there are simple ways that you can save on your utility bills. From taking shorter showers, turning the faucet off when you brush your teeth, unplugging appliances that are not in use, as well as bundling up instead of turning on the heater, you can save money on your bills easily.
8. Keep an eye out for sales
Growing your savings account can be difficult, but not impossible, even when you’re wanting to buy a big-ticket item. You just have to keep an eye out for sales, as demand can fluctuate for specific items. If you’re after tech, Black Friday sales can be the best time to get your new laptop at a much cheaper price, or try and buy your much-wanted items during Boxing Day sales. And if you’re needing a little bit of a cash boost to get the items you want, consider getting an instant cash loan online to help you get that extra bit you need. With instant loan approval, there’s no waiting period that will make you miss out on the items that you want to grab.
9. Consider buying second-hand
Second-hand, gently used items can be much, much cheaper than their brand new counterparts. Look through local op-shops, or online thrift stores and auction sites to rake in those savings without paying a high cost.
10. Make full use of your savings account
Shop around for the best savings account on offer with good interest rates. Make sure that you set up an account that will make your deposits easy to make and retrieve when you need them, too, and watch as your savings grows over time from frequent deposits and interest.