Saving is hard, but the consequences of mindless spending are harder. If your previous year’s budget and expenditure made you think about saving, then here are three interesting hacks for maximizing your savings, and minimizing your spending guilt.
1. Specific Planning with Monthly Mini Goals
Right from the beginning, have a clear idea of the number that you want your savings account to reflect by the end of the year. Fix monthly increments, as you work your way towards that end goal amount.
Haphazard planning and working on whim will prove unfruitful in the long term. Tracking progress will become meaningless, and you might not save as much as needed. Divide your monthly increments into smaller goals such as weekly, biweekly, or even, daily, in order to stay motivated.
2. Determine The Saving Method Suitable For You
There are many money-saving methods, thereby, determining what makes the process easier for you is practically important. Some are:
Cut out the inessential expenditure throughout your day such as your daily trip to your favorite hangout spot or your latest shopping spree. These small expenses have become so naturally ingrained in our system that we often negate the amount we could actually save if we cut down on them. Spend only on absolutely necessary items on a strict budget.
If you can manage to find extra time during your work week, go for a passive source of income or side gigs. Whether it’s being a retail worker or freelancing, the funds gained could boost your savings agenda. You may even want to consider investing in cash flow assets, and save the profits made.
Bring out the extra items from your closet and cabinets and put them on sale. A good rule of thumb to know if you should sell or keep something is to check if you have used it recently. If you haven’t used anything for over a year, it’s time to sell it. Try online websites and apps, and you will earn some extra cash.
3. Find A Secure Place For Fund Storage
The most important step of saving is knowing where to store the funds. It must be secure, beneficial, and somewhere you aren’t easily tempted to access it. You should also consider building interest as it stays deposited. Some places are:
Though basic, it is fairly efficient. You will be able to move the cash around in need, but you won’t earn a lucrative interest.
Placing your funds in CD would restrict you from withdrawing money until a stipulated time period. Though it may serve as a stronger motivator, it might be troublesome during emergencies.
Accounts on the Money Market carry amazing interest rates, but they may have restricted regulations on initial amount to be deposited and on frequency and amount that can be withdrawn. If you think you can work your way without immediately needing much of these funds, you should go for it.
These hacks mean nothing if you cave in to your temptations. Stay strong, stick to your financial goals, and keep tracking your progress. You might want to try online finance tools to visualize on a monthly basis, through all your accounts, how much of the way is left, and how much you have covered. Use these three hacks to create your own savings strategy, and if you need financial advice or assistance, consult experts at Xander Financial.