Now is a good time to increase your cash stash. It does not matter how large or small you make – you can build wealth by managing your finances correctly. Below are some tips to increase your savings without drastic changes to your spending habits.
- Pick an inconvenient bank.
Banks try to get your business by making money accessible. Online banking allows you to pay bills, withdraw savings, and make transfers in a few keystrokes. It is convenient but building savings is about leaving your money untouched. To do this, select a bank that is far from your home or work with inconvenient hours. You can also choose one with big fees for withdrawals and those with at least 48 hours wait time for a transfer.
- Keep paying in.
If you have free money after making your last car payment or paying off your student loan, do not use it to bump up your spending or collect new debt. Divert this money into savings. Maintain your standard of living and watch your savings grow quickly!
- Reduce your recurring expenses.
Cut dollars from your budget by examining your monthly bank and credit card statements for recurring charges that you could actually do without. Review bills like gym memberships, monthly magazine subscriptions, or music streaming services that you do not use often enough to justify the expense.
- Turn into a game.
You probably heard one person say, “Every time I get a $5 bill, I put it inside a jar.” It is not a sexy strategy but it does save you money. Other people double their savings every day. For example, you put a nickel in a jar today, followed by a dime tomorrow and 15 cents the next day, and so on. It appears simple enough but if you carry on for a year, you will have saved over $3,000! Who would not want that under their name?
- Be smart with windfalls.
Follow the rule of thirds: Add 1/3 into savings, 1/3 to debt management, and 1/3 for spending. You do not have to save the whole amount. Treating yourself is part of a good financial strategy, too!