Smart Money Tips to Grow Your Savings

So many people are living paycheque to paycheque or struggling to make debt payments that having savings might seem like an afterthought or a luxury. It’s incredibly important, however, to have savings set aside for emergencies and as a way to plan for your future. Not sure how to start saving? Read on to learn some tips for growing your own nest egg.

Saving

Borrow Smarter

Everyone needs a hand every now and then when it comes to finances. If you’re looking for fast and easy ways to borrow cash, know that it can be done and that there are plenty of safe and reliable sources out there like GoDay. It’s important to be conscious of how you’re borrowing and what the terms are of a payday loan in order to avoid any embarrassing mistakes due to interest rates or misread fine print.

You can turn to educational resources that will outline the pros and cons of how to borrow money because it’s important to educate yourself about your options. Ultimately only you understand your situation and what you need to get through a tough time. With a little help, you can get back on your feet and get back on track for putting money towards savings.

Automatic Savings

Depending on your bank account and what electronic ways you use to manage your money, you can set up automatic savings as an incredibly effective and easy way to save. Without even having to think about it, a devoted portion of your income goes directly to your savings account. Just be sure to account for this in your budget, but don’t think too much about it.

As an “out of sight out of mind” way of saving, you don’t have to overthink the saving process but you can rest assured knowing you’re making regular contributions to your savings account.

Short- and Long-term Budgeting

Budgeting is a crucial part of any financially responsible spending plan and if you haven’t started budgeting, then there’s no more time to waste. When budgeting, you set aside money for living expenses, debt and loan repayment, food, transportation, utilities, and more. When doing so, make sure to set aside a portion of your budget for savings and have both your long- and short-term financial goals in mind.

By mapping our your long- and short-term budget plans, you develop an understanding of where you are and where you’re going with your money. Your budgeting will help you set up a plan for how much you need to put away to have a reliable “rainy day” fund that you can count on for when emergencies come up.

24-Hour Rule

See something shiny and new and think that you just have to get it? If you have the urge to buy something expensive on an impulse, force yourself to think it over for 24 hours. Keep your mind focused on valuable saving techniques and ask yourself: “do I really need to buy that?” Especially when it comes to online shopping where you can make purchases with about a second’s thought, giving yourself mandatory time to consider your purchases can prevent unnecessary spending.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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