There are various ways to grow your savings account to achieve your targets. Many of us struggle with keeping cash. Our savings account is not different from our normal wallets or purses. We deposit money in today and tomorrow we take it out. Many of us are forced to act this way due to economic challenges. We however, do not make any efforts to improve our savings. Withdraw money regularly from the account should number one thing to avoid if we intend to grow our savings account. It is not a bad idea to take money from your savings account especially you created the account for an emergency. The problem however, is when the withdrawing is outside the purposes for which the accounts were created. Below are steps to take to help improve your saving habits and growing your account.
Keep your savings out of reach
Once you have developed a saving habit and consequently you now have a saving. You need to learn to stop dipping your hands into the account for purpose other than that which you opened the account. This is one of the challenge many people have when it comes growing their saving account. They make their savings account very easy to access and are therefore tempted to withdraw funds from the account. You should try your best to ensure that you do not take money out of the account randomly. It is advisable to just forget that you have money somewhere. Because as long as your reminded that you have money somewhere and it is accessible, you are likely to spend the money.
Watch your expenditure
In order for you to save, you need to watch how you spend your money, learn to spend less than you earn. Similarly, to grow your savings you need to spend less than you are spending at the moment. There are various tools online that can be used to help you keep your expenditure in check. All you have to do is to ensure you document all your expenses, lets say for example: weekly, monthly or yearly, depending on how regular your income is. At the end of the period you can always review the expenditure to determine what you spend your money on and expenditure you can reduce to cut costs. To keep your expenses in check, budgeting is a must and you cannot do without it. It is not about drafting a budget and dumping it somewhere, you must stick to it. Failure to do this might see your expenses rise instead as you will be prone to spontaneous shopping.
Make your savings automatic
Sustaining s savings habit can be a very huge challenge for many people. It is common to see people save regularly for months only to stop abruptly for a longer period some people are consistent while other are inconsistent in terms of savings, some end up blaming it economic challenge. For you to overcome this challenge, you should adopt automatic savings approach. This will ensure that part of your income is automatically saved. Many banks offer products that allows for such arrangement. Such arrangement would ensure that instead of you receiving your salary and the later battling with yourself to push part of it into savings account, a part of will be deducted automatically and kept in your savings account while the rest will be paid to you. This sound great right! Just as you are able to cope with your tax and pension deduction you should also be able to cope with the deduction for your savings account. It is also a great way to avoid making your savings too accessible.
Monitor your account balance
It might sound weird but some people have never demanded an account statement from their bank before. While some who received the statements hardly bother to even look at them. Such people are likely to be shocked to see someone in a banking hall demanding to see the bank manager because a certain amount was deducted from their accounts. It is important to take note of your account balance and always strive to understand the implication of new financial regulation on your accounts and savings. In order for you to grow your savings accounts, you need to understand what the interest on your savings is and that it has been or is been paid into your accounts. You also need to understand the fees you will have to pay for any transaction you will carry out on your accounts and ensure that not more than the stated amount is deducted from your accounts.
Choosing the eight savings account
The basic services offered by banks are inter-related, the interest rate they offer and the charges for their services differ from bank to bank. It is important you choose the right kind of savings account or else it would be difficult to get the desired benefits from your savings. When choosing a savings account it is important you consider; the interest rate, account charges, minimum and maximum balance and the cost of withdrawals. Always find out first so you don’t end up losing excess money to the banks.
Although there are no magic tricks to make you an instant millionaire, there are a few things you can learn to help you reach your goals. No matter how much debt you have or how little income you make, with a right attitude toward money you can figure out how to make your money grow in a saving account with the right financial plan. If your goal is to make millions so you can buy your dream house, travel the world, buy new cars, pay children school fees or even to help other people, then these seven steps will help you get there in no time.
Making a budget is not difficult, but it can seem daunting if your personal finances need a big overhaul and you are desperately trying to build wealth. A helpful budget app may get you on the right path, but the most important thing to remember here is to make your budget realistic! When you are trying to decide what to cut off from your current spending, look for things you know you can live comfortably without. That’s mean getting rid of some of your monthly subscriptions like: phone, magazines, trips to nail salon or anything you know that is more of a want than a need.
After you have made those cuts, divide your income into three piles like this below lists:
1. One for your saving account
2. One to pay your bills and basic necessities with
3. And the left over extra cash just for fun or other minor emergencies.
Too strict of a budget will drive you crazy, and the best way to maintain good financial habits is by rewarding yourself even if it is just with a new outfit from time to time.
· How to build money by setting goals
Even if you make the most amazing financial plan in the world, without setting a specific saving goal in mind, the chances of you actually sticking to your budget are pretty slim. Do you want to save up to buy a home? Create an emergency fund? Whatever your goals are, assign price tags and deadlines to give your budget purpose and to keep you motivated while saving money.
· How to build saving quickly set it and forget it
The great thing about online banking today is that for almost everything, you can set it and forget. If you want to allocate 15 per cent of your monthly income for retirement saving and five per cent for your down payment fund, set up transfers for every pay cheque so that money goes exactly where it needs to automatically. This will help you build your saving habit by reinforcing the habit of paying yourself first, and will save your time and effort as well.
· How to maximise saving by avoiding credit purchases
Today many people are wary of using credit cards since this can lead to hefty debts if not used wisely and responsibly. But not only are they generally more secure to use than debit cards; they can also make you money that you can put directly into your saving. Depending on the cash back credit card you get, for every Maura you spend, you will get money back either directly onto your card or in cheque form. Now that is just easy money right! As an added bonus using credit cards responsibly will help raise your credit score by lower your interest rates and save you money down the road.
· How to build your money by knowing your worth
Although sometimes you might just be thankful to have a job, it is also important to know your worth and be paid accordingly. Do some research to see if you are being paid the median salary for your current role, and if not, it might be time to ask for a raise or look for a new job that pays better while still working! Remember don’t leave your current job until you find one that pays more. And the more money you make, the more money you can put into a saving account.
· How to make money grow in a saving account by getting a side gig
Many people these days have second job called side hustles to supplement their full-time income, and it is a great way to accelerate your savings, too. Are you natural at crafts? Maybe you should consider selling some of your crafts. Do you enjoy concerts and sporting events but don’t want to pay for them? why not find a part-time job at night working at the stadium to maximise your savings.
· How to maximise saving by investing
Putting extra money into saving is important. But to make sure that money grows or even just maintains its worth over the years with inflation, you need to start investing with a good investment strategy. The more you save, you need to make sure that big chuck of change is put to good use, and that might mean putting it into investments, bonds, stocks, shares, mutual funds or other investments in the money market, or consider venture into small business.
· How to build your money by making sacrifices
Above anything else, the oldest trick in the book to build up your savings account is to make some sacrifices with products and services. That might mean cutting back on eating out or participating in social activities. No matter what, at the end of the day, all of those sacrifices will be more than worth it. Not only will you be a heck of a lot richer for doing it, but you will never have to waste another night losing sleep worrying about money.
You don’t need a financial adviser to learn how to build your money. If you are really serious about getting on the right track financially and build wealth, these seven tips provided will help you to make money grow in your saving account. Regardless of your age or current financial situation, now is the right time to start curbing those bad spending habits and planning for a richer and more fulfilled future. Do you have a suggestion or contribution? Please leave a comment below and share your thought with us.
