For almost everyone, there is a fairly simple equation each month (or week) when the paycheck comes in. Some money will go towards general living costs, and the rest will usually go to servicing debt. These two “pots” of money are the cornerstone of every budget, whether it be meticulously set out in a spreadsheet or jotted down on the back of an envelope.
If you’re really on top of things, there may be a third pot to be considered; this is your savings. Those of us who are lucky enough to have some money left over after paying off debt and servicing living costs will often put the remaining money into a savings account, aiming to build that pot up over time and use it, when the time comes, to provide a soft financial landing.
With a bit of work and organization, we can all start to save some money- and with the tips below, we can ensure we’re putting more into it each month.
Add what you can, when you can
One of the key principles of boosting your savings is always looking for the best deal on anything that we buy, hire or subscribe to. Sometimes, through habit, we end up spending more than we need to, so it’s vital to look for ways to spend less and bank the difference.
Don’t look at your savings as simply a pot that is added to once a month – any time you get a good deal on something you usually pay more for, add the money you have saved to your savings pot. The more you build this up, the more protected you are against future surprises.
Look at unnecessary costs, and crack down
If you want to have a significant savings pot built up, then you might need to do some forensic accounting. That can mean something as simple as looking at your TV subscriptions and picking one that you use more than the others. It can also involve looking into something like the Debt to Success System – DTSS Debt Discharge Membership Program information shows how you can write off chunks of debt. With your debt burden lowered, you can save significantly more, and build up a bigger nest-egg.
Have a target to aim for
You’re more likely to work at adding to your savings when you have an amount in mind, and are targeting that assiduously. If your savings pot is just a theoretical amount of money, then there is little difference between having $1 in there and $1000. However, if you decide on a specific amount, then each addition you make to the fund represents a step up the ladder to your target.
It could be an amount such as three months’ living costs, allowing you to absorb the blow if you suddenly lost your income, or it could be a set amount which you hope to invest. It really doesn’t matter what exactly the target is, merely that it exists and you have a goal to shoot for.
Saving money and boosting your savings are good things to do per se. If you can plan intelligently and build those savings up then it can represent a huge difference to your way of living – so take every chance to put more aside and you’ll see the benefits in the long term.
Do you have any ideas on boosting your savings?