Simple Ways to Build Your Savings Without Feeling Deprived
For a lot of people, saving money is something that only seems achievable by making sacrifices, and this fact puts them off even attempting to build up a nest egg in the first place.
Thankfully there are options that will let you build your savings while still maintaining your lifestyle and enjoying those little luxuries that make it all worthwhile, so letβs look at a few ways to go about this that you can try yourself.
Eliminate Debt and Start Saving: Taking out a Personal Loan to Pay Off Credit Cards
Are you feeling overwhelmed by credit card debt? Taking out a personal loan could be the perfect solution. With fixed interest rates, you can pay off your debt in one fell swoop without worrying about fluctuating payments or high balances.
Better yet, since personal loans tend to have lower interest rates than most credit cards, youβll save money in the long run. And if it's within your budget, try setting aside some of that savings each month so that when the loan is paid back - voilΓ ! You've established a savings pot with minimal effort.
The benefits keep on rolling in if you choose online personal loans, as these give you a place to check up on your repayments, track your spending and generally have a direct line to your financial status at any time. All of these elements are key to staying motivated and hitting your savings goals.
Make the Most of Your Bank Accounts: Maximizing Savings with High Interest Rates
An easy way to make what money you do have to work harder is to open a high yield savings account. These accounts offer higher interest rates than standard bank accounts, meaning that your money will grow faster.
As youβd expect, they can be opened online quickly and easily with just a few clicks. Just be sure to read all the fine print before committing, as some banks may have different fees or minimum balances associated with these types of accounts. With a little research and savvy financial planning, you can start earning more on every dollar saved, without feeling deprived in any way.
Get Paid for What You Already Do: Making Money from Loyalty Programs, Cashback Sites, and Apps
Amazingly, itβs possible to make a few extra bucks without any hard work by taking advantage of loyalty programs, cash back sites or special apps. It's simple; just use your everyday purchases as an opportunity to earn rewards.
For example, if you're a regular shopper at the grocery store, sign up for their loyalty program and start collecting points that can be redeemed for money off future purchases. There are also plenty of cash back websites out there who will pay you when you shop online through them.
Any cash you save in the process can be plowed into your savings, rather than frittered away unnecessarily.
Automate Savings: Set Aside Money Each Month With Ease
One of the main barriers to a consistent savings strategy is having to make a conscious effort to siphon off cash from your paycheck to put into a separate account where your nest egg is based.
The solution couldnβt be easier. All you need to do is set up automatic deductions that get deposited directly into an account set aside specifically for savings, scheduling this for the day you get paid. This way, the money will never even make it into your wallet or bank account, so there's no temptation to spend it!
Moreover, having regular payments going towards saving encourages more discipline in terms of budgeting, and allows you to reach your financial goals faster than if you were manually transferring funds every month.
Setting up this system is simple, whether you do it using your bankβs online services, or you visit a branch in person to get assistance from an employee in the flesh.
Have an End Point in Mind: Keep Going to Hit a Savings Target
As mentioned, you need financial goals to strive towards if youβre ever going to have a chance of sticking to any savings plan that you set yourself.
The key here is to know what you want, and also to make this achievable within a particular timeframe through the saving strategies you establish.
For example, letβs say you want to put aside enough money to take a major vacation next year. Work out what this will cost, and divide this figure across the months between now and then so you have smaller monthly savings targets to hit, as well as a final sum to take out and use.
The Bottom Line
Sometimes learning to save is about reframing how you think about money altogether, and making major changes in the process. However, as weβve shown, there are small and simple ways to improve your habits that will make a big difference, and help you ultimately gain financial freedom.