Money Saving Tip to increase your Savings in 2021
As we start a new year, everyone is looking out for money saving tip. Even if saving has never been your thing and money is tight. The beginning of a new year is an opportunity to change old financial habits. Here are some ways to become a more efficient saver.
The first money-saving tip we have is quite straightforward; Budget. It helps you organize your finances so you have money left over to save each month. It may seem difficult, but budgeting doesn’t have to be hard. Mobile apps cut a lot of the work and can help you track spending throughout the month.
2. Pay yourself first
Another money-saving tip is to pay yourself first. This way, you firmly commit to making a savings deposit monthly, even if you can only afford a small amount. Do this before paying your other bills.
Money saving tip number 3 is to automate your savings deposit. This way, you simplify the process of setting your money automate your savings deposits. That way, a portion of your pay check will automatically go to your savings account. Or an amount you choose will be transferred from your checking to savings account each month. You won’t miss money that was never in your hands in the first place.
4. Make your money work harder
Compound interest is the interest paid on the interest your money earns in an account, and it allows your principal balance to grow faster. To fully benefit from compound interest, consider opening a high-yield savings account or a certificate of deposit that offers higher rates than the average savings account.
5. Plug up cash drains
It’s not always the big expenses that sabotage saving efforts; small expenses can add up and be a huge cash drain. Plugging up cash drains is a great money saving tip to rein in spending and increase your cash surplus:
- Shop around for the lowest possible rates on utilities, insurance, TV, internet and mobile plans. Also, make sure you get discounts you may be entitled to.
- Check bank account statements for less obvious fees such as those for account maintenance, ATM use or having a low balance. If your accounts come with several fees, it may be time to find a financial institution that costs less.
- Monitor daily spending and cut back on extras like lunches out, donuts runs or fancy coffee.
- Explore free and low-cost entertainment options, including parks, beaches and hiking trails, as well as local concerts, theater and sporting events.
The benefits of saving kick in very quickly and only get better with time. Implementing these money saving tips can help to create a solid cushion in the bank. This in turn protects you in case of emergencies and provides the means to travel, buy a home, get an advanced degree, or pursue whatever other dreams you may have.