If you talk to just about any financial expert, when it comes to making responsible decisions about your money, one thing that they are definitely going to recommend is you that you have a savings account. Not only does it provide you with a sense of financial security but a savings account can come in real handy should you have an unexpected home or car repair or some other kind of emergency.
But if you’re someone whose savings account is honestly not as large as it should be, you’re on somewhat of a tight budget and you’re curious to know some of the ways that you can grow your savings account this year, you’re in luck. We’re about to share with you five surefire ways that you can do just that below:
Set a goal. One of the best ways to grow your savings account is to have a plan for how much money you would like to have in it each year. So, sit down and think about an amount that you’d like to see in your account by Christmas. Our recommendation? Make sure that it’s at least $2,000. $1,500 for emergencies and $500 leftover to rebuild your account again.
Take a certain amount out of each check that you receive. Once you know the savings goal that you have in mind, it’s then time to start putting money into your account. You can begin by taking a certain percentage out of every paycheck that you receive. In fact, if you have direct deposit, you should ask your employer if you can set it up in such a way where there is one amount that goes into your checking and another that goes into your savings.
Work a part-time (or contract) job. If you want to make some extra money, a good way to do that is to do some extra work. It could be a part-time retail job, online tutoring or going to a website like oDesk or Freelancer to look for some contract work. Then, the money that you earn from those jobs can go directly to your savings account.
Don’t spend what’s in your account. If you were to ask a company like DepositAccounts.com about something that you can do to add more money to your savings account, we’re pretty sure that one of the things they would advise that you do is not spend what’s in it. Aside from the fact when you do, you’re always taking money out of your savings which prevents it from growing, it also keeps you from accumulating interest. That’s why it’s best to not look at your savings account as an additional place to get money out but simply a designated spot to put money in.
Pay off debt and then put that same amount into your savings account. Say that you have a credit card bill that needs to be paid off and so you send the credit card company $50 each month. Well, once you have paid that expense in full, how about taking that same $50 and putting it towards your savings account? It’s an easy way to build your account and well surpass your annual savings goal in no time.
Category: Financial Planning