Savings are very important for any kind of investment and for emergencies.
With the way things are in Australia right now, everything is quite expensive. And, RBA has increased the cash rate yet again. You might think how on earth you are going to be able to put money away?
Believe me when I say that if there is a time to start savings, now is the time – especially if you have never thought about it before.
Here are 10 simple strategies to build your savings up.
#1. Track your expenses: Keep a record of all your expenses, both big and small, for at least a month. This will help you identify where your money is going and where you can cut back.
#2. Set a savings goal: Decide how much you want to save and set a savings goal. This will give you a target to work towards.
#3. Create a budget: Based on your expenses and your savings goal, create a budget that allows you to save money while still meeting your needs.
#4. Automate your savings: Set up automatic transfers from your checking account to your savings account each month. This will help you save money without even thinking about it.
#5. Reduce expenses: Look for ways to cut back on your expenses. This could be as simple as eating out less, cutting back on subscriptions, or lowering your utility bills.
#6. Find ways to earn more money: Look for opportunities to earn extra money, such as selling items you no longer need, taking on freelance work, or getting a part-time job.
#7. Use cash back rewards: If you have a credit card that offers cash back rewards, use it to your advantage. You can use the cash back to add to your savings account.
#8. Comparison shop: Before making any big purchases, compare prices at different stores and online retailers. This will help you find the best deals and save money.
#9. Avoid impulse buys: Think before you buy. If you see something you want, wait a day or two before purchasing it. You may find that you don’t really need it after all.
#10. Celebrate your progress: When you reach a savings goal, celebrate your success. This will help motivate you to continue saving and reaching new goals.
My favourite strategy is #6 – find ways to make more money. In today’s digital world, making money is easier than it was, say, 10 or 20 years ago. We all have talents that can be monetised and things we don’t need that can be sold.
What is your favourite strategy? I’d love to hear from you.