If you are looking for new ways to increasing your savings’ balance, continue reading to discover a simple guide to saving money in a short amount of time.
How to save money: A simple guide to increasing your savings’ balance
1. Be clear about your priorities
As an example, if your top priority is to save enough money for a house deposit, you may be more likely to stick to your budget so that you’ll be able to put an offer on a home, in the near future.
You should find that giving up small luxuries such as cafe meals and fast fashion a whole lot easier if you’re clear on what you’re saving for. Both in the short term and in the long term.
2. Save as much money as you spend on treats
As an example, if you spend $5 on a coffee, opt to transfer $5 from your everyday bank account to your long-term bank account. If you’re unable to do both, hold back on the purchasing the treat, which you were tempted to purchase for yourself.
3. Think about how many hours you had to work to purchase items, instead of their dollar cost
If you look at each item, which you’re interested in purchasing and calculate how many hours you would have to work to purchase the item in question, you may be put off blowing your budget on an item that you don’t really need. Remember that there’s no more valuable resource than your time as time is limited.
4. Pay off your credit card debt each month
Never purchase an item on credit, if you won’t be able to pay the sum of the item in question off in full by the end of the same month. One huge benefit of paying off all of your debt in full each month is that you won’t be charged extra interest on your credit card repayments. Which will help you be able to save a greater proportion of your disposable income.
5. Pay your bills each month using automatic payments
It’s well worth contacting your local bank to set up monthly automatic payments in order to pay your bills such as your rent, your mortgage or your power bill. Doing so will ensure that you’ll never have to pay late fees on your bills.
6. Purchase your friends and family members gifts on sale
It’s well worth thinking ahead and electing to purchase your friends and family members birthday and Christmas gifts on sale. As an example, you may want to buy some of your presents on Black Friday each year, when you’ll be able to take advantage of crazy sales. If you don’t want to face insane crowds, simply shop online, instead of visiting physical stores.
7. Drink water when you dine out, instead of wine or soda
If you drink water when you dine out, instead of wine or soda you’ll be sure to save at least a few hundred dollars per year.
So if you’re interested in fast-tracking your savings, it’s well worth following all 7 of the effective saving tips outlined above.