Follow these Financial Hacks and Increase your Savings Account Balance
Post pandemic, everybody is working on their health and finances, leading to great uncertainty. You should focus on managing your finances well to have adequate provisions for your future.
You should have enough funds to cater to your basic expenses and the luxuries as well. For example, you are buying a new house or buying a good car, saving your lavish wedding or planning a vacation.
Always ensure to have a buffer for your spending to avoid getting stuck in a financial quagmire. Your finances should be sufficient to make your future financially safe.
Pave the way for a safe financial future
Having enough money to pay for everything is a good state to be in. But to be in that state, it is essential to save sufficient money.
This is one of the prime reasons to save money as they prove to be beneficial for your secure future.
You should have a clear purpose for saving money as it becomes easy to compromise with your desires in the initial times of your financial journey. A good saving amount becomes the strong financial foundation of your future.
Effective financial hacks to save money
- Plan a budget of your total income
Your prerogative is to create a budget of your total disposable income. Once you have set a budget, it will be easier for you to determine your savings, spending and other miscellaneous expenses.
- Set saving goals
Saving money is an art, and it can be easier if you set your specific goals for your savings. The goals should be achievable and realistic.
- Set your allowance limit
Treat yourself with a weekly allowance. Set your budget and see how much you are left with your spare income. Do not over-treat yourself, and set a weekly budget for yourself.
- Put any spare money into savings
If you are left with any spare money after making all the allocations, rather than carrying forward it the next month, put in your savings for that month.
- Get a separate savings account
Get a separate savings account in your bank. Keeping the leftover money away from you may make you less tempted to spend that money. Putting these funds in your savings account will help you save more money.
- Consider using cash instead of cards
Having cards in your pocket can let you spend more than your budget as it is not visible spending. Instead of cards, prefer to sign cash as it will help you in mindful spending.
- Avoid using credit
Using an interest-bearing credit card can be an expensive deal for you. You may pay a higher interest rate if you have more balance in your account.
- Cancel out of date direct debits
Cancel all the direct debts that you do not use anymore. For example, your gym memberships, broadband connections etc. Check the entire collection fee before cancellation.
- Collect loose change in a jar
Follow the old-school tradition of collecting all the loose change in a savings jar if you find it difficult to save a specific amount of money. With your savings jar, you can watch your money growing day by day.
- Decide a no spending day
Decide one day of the month or a week that will be your no-spending day. You do not have indulged in spending money on that day. This may help you curb your habit of overspending.
- Focus on cutting down on small habits
Try to curb your small purchases as they tend to contribute to a large purchase. Your small habits may include getting a coffee or eating out in an expensive food joint.
- Curb bigger spending
Along with smaller habits, try to curb your bigger purchases. One bigger purchase may pull you down and balance out all the savings. Your bigger purchases may include buying a huge hose or buying a luxury car.
- Look out for company benefits
You can check out with your company if they offer any employee benefits? Many companies offer discounts on various food joints, schemes on groceries and many more.
- Download a savings app
Download a savings app that will help you keep track of your savings and notifies you to save more. There are many apps such as Squirrel, Moneybox or Plum.
- Subscribe to financial newsletters
Along with your applications, you can subscribe to various financial newsletters that will help you improve your financial knowledge.
- Sign up for podcasts
Sign up for various financial podcasts such as BBC’s Money Box, Money to the Masses and many more.
- Check on your smoking habits
If you are a smoker, you can cut back on your smoking habit. On average, people who cut back on their smoking save around £128 per month.
- Apply for an interest-free credit card
To cut down on your spending, you can check for an interest-free credit card. If you have a good credit score, you are eligible for it. You can transfer your money to an interest-free card to finish up your interest-bearing overdraft.
- Opt for the snowball method
Follow the snowball method in paying off your debts, i.e., start with the smallest debt first. The logic behind this is to feel motivated once your debts start reducing as you have paid the smaller ones.
- Avalanche method
The other method to pay off your debts is to start with the biggest one first. Once the higher debts are paid off, you will be left with smaller amounts to pay off. This will reduce your payable interest amount at a faster speed.
Many people take out car finance from direct lenders that sum up to a huge amount. You can start playing with that amount first to make your debt bag lighter.
Conclusion
It is advisable to take action NOW to have a savings plan for yourself. Focus on savings for emergencies in the future to save yourself from falling into a debt trap.
