In today’s banking climate, growing a savings fund can often be difficult. Interest rates are extremely low, typically around 0.01%. Despite these facts, a savings account or just a savings habit can be essential. Having money stored away can be ideal for an emergency fund, to save up for a large investment like a car or home, or even for your child’s college tuition. Here are 5 simple and effective ways you can grow your savings.
- Cut out the coffee runs. While it is tempting and convenient to grab a cup of “Joe” at the nearest Starbucks or Dunkin Donuts franchise, resist the urge. These expenses can end up costing you around 5 bucks each day. This money can easily be saved if you brew coffee at home and take it in a to-go cup. Save the coffee shop trips for a special treat because these unnecessary expenditures add up and can really deplete the amount of money you are able to save. Instead of spending that money on coffee, take a few bucks each day and add it to your savings account, or tuck it away in a savings jar at home.
- Budget your paychecks. When you get a paycheck, always put the majority of your money toward monthly bills such as rent and utilities. Once that money has been settled, you likely use more for expenses around the house like buying groceries. However, that doesn’t mean the leftover money is a free for all! While it’s okay to give yourself some “splurge” money, you should always be sure to take a chunk of your paycheck aside to be put into your savings account first. Getting into a regular routine of saving surplus funds will allow your savings to grow exponentially and quickly as long as you are consistent.
- Don’t get sucked into sales or deals. Many stores try to entice customers and pull them in by advertising big promotions or steep discounts. These are fantastic if the deals are for things you really need, but they can be devastating to your savings if they are frivolous, unnecessary expenses. Sales frequently and effectively persuade people to buy things they really don’t need and would never have considered buying otherwise. Stay away, and only shop when you truly need an item to avoid impulse spending.
- Use credit cards with caution. Too often people use credit cards lightly. A plastic card is very different than shelling out paper bills. For some reason cards seem like “fake” money to many consumers. Whenever possible, try to use cash or even a debit card with a limit. If you are using a credit card, remember that it is a payment not a credit. You have to pay this money back at the end of the month otherwise you will have to pay even more in interest charges or late fees. Credit cards can be good if used wisely since they can help you build up your credit, but you need to be cautious and responsible with them.
- Treat your savings as a bill you need to pay. Paying yourself should be just as important as paying back college debts or your electric bill. Make a promise to yourself that you will consistently set a specific amount of money aside each month, and stick to your word! Do not allow yourself to waver, and you will be positive, lucrative results with time.
Saving isn’t just about cutting back on spending or using coupons from, CouponLoco. Being able to save money efficiently requires a shift in thinking and a lifestyle change. You need to be selective about the things you buy, avoid impulse buys, budget your expenses, use credit cards wisely, and pay yourself! These tips are simple, but will require dedication and consistence in order to be effective.