Although many people know that having a savings account is highly crucial, taking the steps to actually create one is the most challenging part of it all. It is quite difficult to put away some money in a savings account when you live from paycheck to paycheck.
But the good news is that the smallest contributions can go a long way in securing your financial future, especially if you create and use a high-interest savings account.
There are several things you can do to enlarge your savings account without feeling the burden on your income. Therefore, follow these hot tips to boost up your savings:
Pay with cash
Paying for goods with cash enables you to see the exact amount of money you are paying for products or services. In most cases, there will be some small change from these transactions. Drop the change into a glass jar when you arrive home. Do this as often as possible; make sure you empty your wallet or pockets before taking off your clothing as soon as you get home.
Before long, you will notice that the change has piled up to a significant amount of money. This practice will even help you pay dividends in the long run.
Steer clear of impulse purchases
Find a way to reduce the urge to buy stuff on impulse all the time. Take a look at the bills you incur from using the phone, internet, grocery, etc. For example, you can switch to a lower cost phone tariff plan. Take advantage of coupons at the grocery store and start clipping them.
Who knows, you may add an extra $50 to the amount you save each month if you use coupons!
Credit card roundup
Some credit cards out there are notorious for rounding up each purchase into the nearest dollar amount. If you own a credit card from Bank of America, for instance, you will have experienced such as scenario severally.
Let the rounded amount be deposited automatically into your savings account. Adding to your savings account becomes more natural and effortless when you get any one of these card accounts.
Minimize everyday expenses
There is almost no one on earth today that has not, at one time or the other, submitted to impulse buying. But if you want to save a significant amount of money, you need to be hard on yourself.
You can do this by making a pact with yourself that you will never submit to impulse buying again. It is not going to be easy at first, which is why when something catches your fancy, and you feel the urge to buy, suppress the urge and move away from the spot if it is not something that will add value to your life.
Stop using credit cards
You should stop the use of credit cards as much as possible, especially if you have a hard time paying them off in full at the end of every month. Switch over to using cash and debit cards while you take your time to reduce your credit card debt.
Never dig yourself deeper into debt when there is a way to avoid it altogether