No matter where you stand with your financial status, it’s important to understand that there are many different things that you can do to reach your goals. All it takes is a simple change in your habits and strategy for you to be on your way to saving more money. To help you get there, here are 8 simple tips to save money.
1. Set a Clear Goal
One of the reasons why many people don’t save money is because there’s no motivation behind it. To make it more real, you need to set a clear goal whether it’s to save enough for a new car, down payment on a house emergency or simply a vacation. This will help you track your progress and remind you of the end game.
2. Rework Your Budget
You probably already have a general budget in place but it helps go back an rework it to see if you can save any more money. Be as specific as possible about your expenses and think about what you can do without. You’ll be surprised to find your budget has decreased by as much as 10 percent which means more money in your pocket.
3. Switch Bank Accounts
While interest rates are still low, you can still make significantly more money by switching to a bank that offers a better rate on a savings account. The difference between a .25 percent and 1 percent interest on $50,000 is $375 a year. Many banks will also offer you a reward ranging anywhere from $100 to $300 for opening an account with them which is an added bonus.
4. Sign Up for Customer Rewards
It doesn’t matter what you buy, you can always find customer reward programs for your purchases. If you’re shopping online, there are websites that will offer you five to ten percent cash back on your purchases for shopping through them. There are also rewards/loyalty programs for popular retail stores. When stacked with cash back rewards credit cards, you can save as much as 17% off your purchases.
5. Make It Automatic
Many banks now offer a feature to automate transfers between your accounts through an online interface. That means that you can set a specific amount of transfer over to your savings account every month. This process takes the effort out of having to think about saving money.
6. Keep Yourself Accountable with Regular Reviews
Are you spending too much money? Are you not saving enough? What else can you do to save more more money? By reviewing your financials on a bi-weekly or monthly basis, you will keep yourself accountable and ensure that you’re taking the right actions. It’s easy to get sidetracked but that won’t happen if you assess your progress regularly.
7. Rent or Buy Used Stuff
Instead of buying a new bag for an important outing, considering renting them. Instead of leasing a new car, consider a shared car program if you don’t drive much. Buying used electronics, movies and books can also save you hundreds of dollars. The idea here is to never buy new things and rent when possible.
8. Consider Investing into High Yield, Money Market or CD Accounts
The reality is that expecting to save a lot money through a regular savings account is almost impossible with today’s interest rates. Instead, you should consider money market or high yield savings accounts. The rate goes up based on the amount of money you put in and the term length. For example, a five year CD can offer as much as a 2.4% interest rate.
Those are just some of the many things that you can do to save money. Although these tips are simple, implementing them will help you get on track to reaching your financial goals.