Unless you win big in the lottery or receive a large inheritance from a relative who passed on, the only way you can notice a substantial boost in your savings is by saving wisely and saving a lot. However, it’s easier said than done. With the current cost of living and no significant change in salary, growing your savings can be quite a challenge. Here are five tips that you can start today to help give your savings fund that much needed boost.
Invest your money
It’s not enough that your money is in the bank. You have to look for other ways to make your money grow. Invest in stocks. Buy shares. Purchase real estate properties. Invest in collectibles like art, antiques, and rare coins. You can even start investing on stuff related to pop culture because these will be considered collector’s items in the next ten or twenty years!
Set a savings goal
Instead of saving what’s left of your money each month, save a specified amount first and then spend what’s left. Save it right away before you change your mind and start spending it on shoes, clothes, and other stuff you want but don’t need.
Pretend that you never got that salary increase last month, and put it directly into your savings.
Make saving a habit. Include your savings in your monthly budget. No matter how small or how big you earn each month, make sure that you put something into your savings fund.
Don’t save just for emergencies. Save for your retirement. Save for your vacations. Save for your future kids.
Reduce your overhead costs
Start spending less and spending wisely. Bring homemade lunch to work instead of hitting the nearby cafes and restaurants. Review your mobile phone plan or your cable subscription, and see which features you don’t need.
Consider moving to a smaller and more affordable apartment if you live by yourself. If you live near your office, ride your bike instead. Leave the car at home, and save money on gas and parking. Buy stuff only when you need it. Avoid the malls or the stores when you feel happy and excited or sad and heartbroken.
Pay in cash
Don’t bring your cards with you when shopping. Credit cards give you the illusion that you have more money than you do at the moment, and this can just be the encouragement that you need to make that impulse purchase.
Bring only cash with you, and pay in cash. Stick to your budget. This will help curb your urge to spend more.
Keep the change
Don’t underestimate the power of loose change. Fill a jar with all your loose change. At the end of the month or the year, when you cash it in, it can add a significant amount to your savings without you even realizing it. Keeping a coin jar also serves as a reminder of your goal to save money every day in whatever way you can.