Thinking about building your savings may seem overwhelming, especially when you just paid for your car insurance, student loans and rent. Taking more money out of your paycheck, even if it’s to put into your savings account, can feel impossible. Chances are it isn’t and although there is no magic solution to increasing your savings, these tips will help steer you down the right path.
1. Make a Realistic Budget
This may seem daunting and repetitive, but building your savings and staying consistent requires a clear plan. You don’t have to create a budget alone. There are a variety of budgeting apps that can help get you started, but the most important thing to remember is make your budget realistic for your lifestyle — start small and work your way up. If your budget is too strict you will drive yourself crazy and you may give up on your plan altogether.
2. The Change Jar Method
Dust off that old childhood piggy bank and put it to good use! The loose change in your pocket, on your car floor, and underneath your couch cushions can add up in the long run; especially if they are being stored in a jar and left untouched. We’ve heard plenty of stories from customers who created emergency funds, payed off debt, or booked a vacation simply by throwing all their loose change into a jar and never spending it.
3. Cut Costs Around Your Home
Think about it, how many things around your house could you part ways with without losing any sleep at night? Or how many little things could you do to cut down your monthly living expenses? You can apply that approach to other things around the house. Get rid of your home phone and eliminate any unread magazine subscriptions. Lastly, be conscious about how much electricity you are using every day around the house. Turn off the lights when you don’t need them on, lower the heat or turn off the air conditioning when you are not home. If you stay consistent with these small changes, you will start seeing a difference in your monthly electric bills.
4. Get a Side Hustle
Having a side job is an excellent way to accelerate your savings. Do you love to knit or have a knack for DIY projects? Consider creating a shop on Etsy and selling your pieces online. Are you a night owl and enjoy concerts or sporting events? Find a part-time gig working at night or on the weekends. The possibilities are endless.
5. Set-up Automatic Transfer
Out of sight, out of mind. Ask your bank how to set up an automatic transfer to your savings account. Allocate a certain percentage of each paycheck to be automatically placed into savings. This is one of the best ways to build your savings account.
6. Make Some Sacrifices
If you are truly serious about building up your savings account, you’re going to have to make some sacrifices. This may mean less nights
eating out with your spouse, putting an end to your monthly music-streaming subscription or canceling a meal kit service. At the end of the day, you lived without those things once upon a time and you survived. Plus, it will all be worth it once you start seeing that savings number climbing higher and higher.
Building up your savings is not something that happens overnight, but if you incorporate these tips into your daily life they will steer you in the right direction. No matter how old you are or what your current financial situation is, it’s never too late to start building healthy spending habits and planning for a richer and more fulfilling future. Firmus is here to help! We have a couple of savings products that will help you in this journey to saving more. You can also convert your savings to a fixed deposit with us at attractive rates.