With the increasing need for financial sustainability, everybody wants to save as much as they can. Although saving sounds more of a decision, in reality, it is a habit that must be developed progressively and eventually mastered. Yes, starting right might be a bit difficult. However, if we put in some measures like having specific bank accounts for various expenses, reducing credit card limits, and cancelling unused service subscriptions, we will be amazed at how much we would save in the end.
Here are five proven hacks that can help you save more in the current year;
Discipline cuts across every sphere of saving. First, you need to bring yourself to create various bank accounts – four ideally. The first is four your everyday expenses, the second for your bills – usually a low-fee account, the third is a splurge account – for holidays and fun, and the last one is for your savings. Determine how much you will be putting in each account, and put in place automatic regular transfers from your pay cycle. In cases of an increase in your income, feel free to update the limits so that the increment is evenly distributed across the accounts.
2. Reduce Expenses
Expenses is the main antagonist to savings. Even if you increase your income and you don’t keep your expenses at bay, you will most likely have little or no savings. Finding it difficult to pay bills or meeting your savings goals? Start by cutting down on your spending significantly. Cancel all membership subscriptions for services you hardly use or not using at all. Opt for lower interest rates, and use services that attracts the least charges. If possible, demand a pay rise to increase your income, or better still, invest your time in side jobs like Uber driving or being a service provider on suitable platforms. In all, ensure that you are proactive with your finance management.
3. Reduce your credit card limits
If you set a limit of $5,000 on your credit card, it most likely means that you will not get bulged if you spend $5,000 monthly, even if these expenses are irrelevant. This reduces your chances of savings significantly. Instead, reduce your credit card limit to an amount that you can pay off without issues come month ending.
4. Keep your savings away
If your savings are within your reach, chances are you will spend them. Put measures in place that keeps your savings out of your reach. Perhaps, you may need to block your internet banking or card for account containing your savings. Better still, you can opt for a savings account that charges significantly or demands payment for every withdrawal, or whatever that deters you from spending your savings.
5. Settle your high-interest debts first
Your high interest debts should be your priority when it comes to clearing debts. These credit card debts can be significant, and you will need to be deliberate to clear or reduce them. How about reducing the debts temporarily or fixing your mortgage interest rates? Doing these puts you in a position to make the payment of other debts a priority.
If you could put all these hacks into use, you will be amazed at how much your savings culture will improve over time.