Saving is really the easiest way of ensuring you have a secure financial future ahead of you. But sometimes saving can be quite a pain in the neck and you end up feeling like you aren’t contributing enough to your savings account. To help you out, you should definitely take use of these five really simple ways of boosting your savings.
1. Separate Savings Account
A lot of people have the problem of using their normal account for saving. You might think that you are trying to save money on it but in the end you just end up spending it all. You might also open up a savings account with your current bank and regularly keep an eye on it.
The problem of having an easy access to your savings account is the simple fact that the temptation to take money away from it is a lot higher. You should open up a separate savings account with separate online banking to ensure that you don’t check it as often.
2. Regular And Automated Deposits
It is also very easy to think that you are going to put some money on your savings account but then forget to do it at the end of the month. The best way to avoid this is by starting to use regular automated deposits.
This Money Saving Expert article also highlights that regular savings account can provide a bigger interest on your money then some other savings account. Make sure that the deposit always goes right after your payday to make it seem less painful.
3. Include All Passive Income Into The Account
You can also boost your savings a lot if you stop using any passive or irregular income you get yourself and instead place it all on your savings account. For example, if you are on a cash-back scheme then always put all the money you receive straight onto your savings account.
You already have a budget to live on your regular income and thus any extra that you generate should really just go for your savings account. In the end this will reward you with healthier financial future so it’ll be worth it.
4. Regularly Increase Your Contributions
It is also important that you don’t keep saving the same amount of money each month for the rest of your life. You should hopefully start earning more money as you move upwards in the career ladder and it is important to showcase this in your savings account.
Increase your savings contributions whenever you can, for instance every three to six months. This will ensure you reach a healthy target quicker. A small increase will also mean you don’t really even notice the change.
5. Check Your Spending
Naturally, it is also a lot easier to save more if you are spending less. So it is a good idea to regularly check your spending and see where your money is going. Doing a financial assessment every few months will guarantee you can drop off any unwanted expenses and change bad spending habits before they start affecting your savings.
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Mark Oliviera is interested in learning more about financial management. He likes to look at different UK based accountants and see what tips they are suggestion for people to do in order to improve finances. He is also really passionate about rugby.