One of the most common financial goals is to build a healthy savings account. This money can be used to pay the deposit on a house, fund a dream vacation, or cover the costs of emergencies. Luckily, there are dozens of simple ways to maximize your income and save more each month. Here are some tips to help you build your cash savings.
Save money every month
Most people can save some money out of their salary each month. A key part of growing your savings is to make saving a monthly habit. Ideally, you should put some money into a dedicated savings account at the start of each month before paying any expenses. This is far more effective than moving money into a savings account at the end of the month, as it eliminates the risk of you overspending. You can work out how much you should be able to save each month by writing a list of your incomings and outgoings. Any money left over can be moved into your savings account at the start of each month to ensure that your savings are growing consistently.
Take control of your spending
You will struggle to build your savings if you are overspending each month and making unnecessary purchases. Keep track of your spending and look for any ways to cut costs. Minor changes to your lifestyle could save you significant amounts of money each month. For example, making lunches at home instead of eating out could save you around $1,500 a year according to OutOfYourRut.com. Here are a few tips to help you cut your monthly spending:
• Make coffee at home and use a flask instead of going to expensive coffee shops.
• Walk or cycle to work instead of driving if you live nearby. Public transport is also a cheaper option than driving.
• Shop in thrift stores and upcycle items rather than buying things from new.
• Take advantage of eBay gift cards to get cashback online.
• Visit budget-friendly supermarkets and buy store brand products.
• Cancel unused subscriptions such as gym memberships and magazine subscriptions.
• Use price comparison sites to find the cheapest utility providers and consider switching to a better-value package.
Download a financial management app
There is an excellent selection of free financial management apps available to help you stick with your monthly budget and avoid overspending. A money app will help you see where your cash is going each month and manage your finances better. Mint is one of the most popular money management apps available on the market. It allows you to connect all of your bank accounts and utility bills so that all of your finances can be viewed and managed in one convenient place. The app also provides useful tips on how to save and provides users with a real-time credit score.
Most money management apps are free to download and make it far easier to manage your finances and spending. Everyone should take advantage of money apps to improve their financial habits and build their savings.