Would you like to know how to increase your savings? In Africa, there is a saying that loosely translated goes something like … a little here and a little there fills the plate. And this applies to you in regard to your personal financial plan. They say that a wise person saves first, and then spends what remains. Nothing could be further from the truth because with the kind of high-strung economy we are living in today, saving is a luxury that most of us cannot afford, well, not unless we forego some things.
The times may be hard, but life will not forgive you just because you could not afford to save money. You need to not only save money, but you also need to know how to increase your savings whenever you can and believe me, it is not too hard. If you think hard enough and do proper budgetary planning, you will always be able to keep a dime and a nickel aside here and there. At the end of the year, you will be amazed at how much money you will have saved.
This is the time to be modest and evaluate your financial plan again, as you consider realistic approaches to save money and avoid getting into debt.
How to spare extra cash when you need to handle unemployment, rising costs and other financial obligations?
Is there an answer? Can you truly spare money to be put aside in such intense conditions? Yes you can embark on how to increase your savings.
The basics of saving money
- The answer to all these and more questions is a resounding YES. Start small, for example, by analyzing your day to day spending and you will be amazed to see how much money you spend senselessly.
- Eat at home rather than of eating out. In case you buy lunch consistently, start bringing packed lunch to work. Home cooked food is always cheaper because there are no overheads to pay. It is also healthier since you know what went into the pot.
- Make your own coffee rather than buying it at Starbucks on a daily basis. If you learn to make really great espresso, it is a skill that you can pass onto your children.
- Purchase some perishables in large quantity as that will save you fuel that you would have used to drive to the grocery every time you need something. In addition, there could be a quantity discount for you when you buy in bulk. Make sure you have shopped for everything that you will need for a couple of days and then desist buying things at impulse.
- At home, try to use as much of natural lighting as possible. Turn of the TV, don’t keep on opening and closing the fridge, open the blinds to take advantage of the sun… and so on
- Instead of heading to the theater to catch a movie, rent a DVD and watch at home
Increase your savings by shopping smart
Take advantage of rebates, discounts, coupons. Look for coupon codes when you are shopping online and for printable coupons when you are shopping offline. The reason why many people love coupons is that they help them save money on items they would have bought anyway.
Where do you find coupons? On the websites that bring updated information on coupons. Catalogues, newsletters, local dailies and magazines may also have coupons sometimes.
With coupons, you can even buy consumer items and electronics with huge discounts of up to 90% on websites like SnagShout.com
Can you walk to work instead of using the car? If you live two or three blocks away, I am sure you can do that perfectly. This will not only increase your savings, but you will also enjoy better health and save your car on mileage.
Consolidate your debt obligations and pay it off as ahead of schedule as possible. You can also swap the obligation to another credit card if it offers better conditions.
Dispose of costly enrollment expenses
Do you have gym memberships that you hardly find the time to attend to? Then it is time to cancel such and do away with them. You could be paying a monthly or annual subscription fee for nothing. How to increase your savings does not include such memberships.
If you would like to save money from your income, you should subscribe to an automatic savings plan that will deduct, say, about 10% of your gross salary. However, this is not everything. You should save as much money as you can from other sources too.