Saving money isn’t always easy, but it surely doesn’t have to be as hard as some make it to be. While spending excessive amounts of money can be easily done, saving up a few dollars can often be tedious and time-consuming. However, being even a little bit more responsible with the money in your pockets can turn into financial savings. With that said, here are 5 tips that’ll not only increase your savings account in the long run, but also in developing lifelong responsible spending habits that’ll help keep your pockets green.
Skip the Takeout and Spend it at Home
Sometimes fast food and restaurants become tempting alternatives to home dining due to the lack of preparation needed in making the meal. Why spend time grocery shopping and making the meal when you can just simply let others do it for you? While eating out may seem easier, this daily habit plays one of the biggest roles in emptying out your funds before they reach your savings. An average meal for four at McDonalds can cost up to 30 dollars, whereas home cooking could be as little as 10 to 15 dollars. Not only does home cooking save you money, it allows you to eat healthier on a regular basis.
Budgets Create Reasonable Spending
Create a monthly budget for yourself by noting all recurring and fixed bills that cannot be avoided, and then setting up a reasonable amount to spend for other reasons such as dining out, entertainment purchases, and clothing attire. In addition, a chunk of the budget should also note the amount of money you wish to put into your savings account. That way, you can cut back on unnecessary spending with a goal in mind.
Cut Those Credit Cards Before They Hurt You
Spending money you don’t have in your pockets will amount to a savings account that’ll just diminish rather than increase. Avoid having multiple credit cards to prevent unnecessary spending, as one to three should be enough for bills that require payments through credit cards. Furthermore, if your credit cards’ spending limits are high (2000 and above), try lowering them to more reasonable levels. That way, you’ll be able to pay them off even if you do slip up in a rare occasion or two.
Fixed Deposits Equal to a Steady Increase
If controlling the itch to spend becomes too much, set up a meeting at your bank to see the options and advice they offer in helping you grow a savings account. Major banks like uBank typically offer fixed and recurring deposits for your savings, shuttling money directly from your paychecks to ensure a steady rate of saving.
Note the Savings Rate for Better Benefits
Good savings accounts should have decent interest rates that’ll help grow the money that’s been already stored on a monthly basis. Banks normally offer interest rates ranging from 3.5-4% depending on the amount that’s in the account. The higher the interest rate, the more non-active the savings account typically is. In other words, don’t touch your savings unless it’s absolutely required!
By following these tips, you’ll quickly be on your way to a bigger savings account in no time. Not only that, you’ll soon realize that spending doesn’t need to be impulsive. By planning ahead, your spending will become more responsible, allowing for better usage of your money in the future.