Top Tips on Increasing your Savings

Many of us would like to have more savings than we have. This is because it is great to have money to fall back on in an emergency, money to pay for treats and to be able to avoid borrowing if we can. This means that we will need to have a pot of money behind us. Some of us find it really tricky though to save money and so it is worth trying to think of some ways that you can save more.

Higher interest account

If you put your savings into a higher interest account then they will start to make more money for you. Although this is unlikely to make a significant difference, especially while interest rates are low, it will still make some difference and this is important. If you can get higher interest then why not try as it will enable you to increase your savings. As you add to your savings it will make more of a difference as well so it is worth seeing if you can get a higher rate.

Direct debit to savings account

Many people wait until the end of each month to save money. They will wait until the day before they get paid for just after they get paid and see whether there is any money left to save. Although there is nothing wrong with saving spare money like this, it is less likely that there will be any left to save compared to saving at the beginning of the month. If you set up a direct debit to save a certain amount each month then you will have to budget for the rest of the month in order to make sure that you only spend the money that you have left. If you still have some left at the end of the month then you can still transfer it as well, but if you have a direct debit set up just after pay day, you are more likely to save more money. Give it a try and see whether it works for you.

Stay Motivated

it is important to make sure that you remember why you are trying to save money. Take a note of the reason why and stick it somewhere prominent. Then when you feel a bit annoyed at having to save so much money you will be able to remind yourself as to why it is so important that you do it. Note down how much you want to save and why you are saving it and this should be enough to keep you going. If you still find it difficult then look at the note more often and keep imagining what it will be like when you have the savings that you want. Imagine how good it will feel to achieve those savings and this should help you to stay motivated.

Cut down luxury spending

Many of us buy things that we do not need. It can be tempting to buy things that we like, things we see advertised, nice things for other people and treats for ourselves and if we work hard we may feel that we deserve some nice things. We may even buy things which are luxuries that we consider to be necessary for our happiness such as mobile phones, television channels, holidays and eating out. It is worth thinking about whether everything that we buy really is necessary. This can be hard because we do not want to go without things that we enjoy. However, it is important to remember why we are trying to cut down and the benefits of doing so. It may even be that case that you can easily go without things without really noticing, perhaps subscriptions to magazines or online services that you no longer use, or you can buy cheaper versions of things without really noticing any difference. When you start to look at what you buy and compare prices, it may be easy to start cutting down. Just being aware of how much things are and what you are buying can make a big difference.

Earn more money

If you do not want to spend less, then the only way to put more money in your savings account is to earn more money. You can do this by asking for a pay rise, working more hours or getting a better paid job. This is not possible for everyone and so they may need to find other ways to make money. It may be that they can get an additional job, do some casual work, do some online work or even sell things that they no longer need to raise some money. There are lots of ways to earn some extra money but they may take quite a bit of hard work but they can be worth it if you manage to have more savings as a result of it.

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