Working for Savings Guide has done amazing things for my finances. Always interested in finance, the last couple of years of writing and research has really allowed me to achieve things I didn’t particularly envision; getting rid of my consumer debt, building a solid emergency fund and beginning an investment portfolio. It’s been an incredible gift and opportunity to build sustainable financial stability.
Yet there is still so much room for improvement. This struck me today as I was checking through my finances and realised I had some savings parked in an account that was earning very little interest. A five minute online application later, and my money was moved into a linked account- earning an extra 2% interest, calculated on a monthyl basis. So, while I might think I’m fairly across savings, obviously I still have a long way to go. Whether you’re looking to improve on your solid base, or are just starting to save, here are 5 ways to build up your savings.
Check Your Savings Account Options
Open up your online bank account and check what’s on offer. There might be a special deal on a term deposit, an introductory offer on a savings account (although be sure to calculate whether it will be worth it once you revert to the standard interest rate) or a saving account with a higher interest, as long as you accede to some deposit and withdrawal schedules. It’s also definitely worthwhile to ensure that your account doesn’t have massive fees as that will eat into your earnings from the account.
Automate Your Contributions To Your Savings Account
I have several automated deposits. One, into voluntary super contributions. Two, into an investment portfolio and, three, into a savings account. All three are essential for me and how I feel about financial security, your own personal finances might benefit from other priorities (credit card debt, emergency funds or investment properties). The key is to set up a saving system you won’t even notice. Maybe it’s 10% of your income. Or a couple of hundred dollars a week. Whatever it is, find a high interest savings account and automate your deposits.
Create The Margin In Your Savings Account
The space between income and expenses- the margin- can often seem like a mirage that always shimmers a couple of months down the track. As hard as it may be, instead of waiting for a margin, we have to create it. I cut down one meal out a week. It might not seem huge, but that’s a spare $50 to put towards saving. A budget is essential here, but as important is your awareness- that everything you save actually goes towards savings, as opposed to gets frittered away down a different avenue.
Invest The Payrise Into Your Savings Account
We lived on it before, we should be able to continue to do so. Every pay rise, invest the difference into your savings. It’s the most painless way to save money and will grow your balance at a steady, and sustainable rate.
Commodify Your Time
Most advice on increasing your savings will suggest that you cut down on your expenses. And, of course, that’s an essential aspect in living frugally and working towards stable finances; an ability to live within a paycheck. But there is the other side of the equation, which is increasing your income. This can mean making money from a hobby, asking for a pay rise or working more effectively, meaning you get more done. They’re definitely three things to think about when looking to improve your savings.