10 SIMPLE WAYS TO BOOST YOUR SAVINGS.
Saving money is an essential part of achieving financial stability and security. With so many demands on our finances this days, it can be challenging to know where to start. So at VALDYMAS ENTERPRENEURIAL AND TRANSFORMATIONAL LEADERSHIP EMPOWERMENT PROGRAM (VETLEP) we will list out 10 simple ways to boost your savings, along with some tips and strategies to help you get started.
1. AUTOMATE YOUR SAVINGS
Automating your savings is a great way to ensure that you save regularly. Set up automatic transfers from your checking account( salary account) to your savings account, and choose a specific amount or percentage of your income to transfer regularly. According to a study by the American Psychological Association, automating savings can help reduce financial stress and anxiety (APA, 2020).
2. CREATE A BUDGET
Creating a budget is essential to understanding where your money is going and identifying areas where you can cut back. Track your income and expenses, and make a budget that accounts for all your necessary expenses and savings goals. The 50/30/20 rule is a good starting point: 50% for necessities, 30% for discretionary spending, and 20% for saving and debt repayment (Senator Elizabeth Warren, 2006).
3. CUT BACK ON UNNECESSARY EXPENSES
Cutting back on unnecessary expenses is a great way to free up more money in your budget for savings. Identify areas where you can cut back, such as dining out or subscription services. According to a study by the Bureau of Labor Statistics, the average American household spends over $3,500 per year on dining out (BLS, 2020).
4. USE THE 52-WEEK SAVINGS CHALLENGE
The 52-week savings challenge is a fun and easy way to build savings gradually. Start by saving an amount equal to the number of the week. This challenge helps you to develop a savings habit and build savings over time.
5. TAKE ADVANTAGE OF EMPLOYER-MATCHED RETIREMENT ACCOUNTS
If your employer offers a 401(k) or IRA matching program, take advantage of it. Contribute to your retirement account, and your employer will match a portion of your contributions. According to a study by the Employee Benefit Research Institute, employer-matched retirement accounts can significantly boost retirement savings (EBRI, 2020).
6. USE CASHBACK AND REWARDS PROGRAMS
Using cashback credit cards or signing up for rewards programs can help you earn rewards or cashback on purchases you already make. Look for programs that offer cashback or rewards in categories you frequently shop in.
7. SAVE YOUR CHANGE
Saving your loose change is a simple way to build savings over time. Save your change in a jar or piggy bank, and deposit it into your savings account regularly.
8. AVOID IMPULSE PURCHASES
Impulse purchases can quickly derail your savings goals. Think twice before making impulse purchases, and ask yourself if the purchase is necessary and if you can afford it.
9. USE SAVINGS APPS
Savings apps can help you track your expenses, set savings goals, and automate transfers. Look for apps that offer features like round-up savings or savings challenges.
10. REVIEW AND ADJUST YOUR SAVINGS PLAN REGULARLY
Regularly reviewing your savings progress can help you stay on track to meet your goals. Adjust your savings plan as needed to stay on track or address changes in your financial situation.
By following these 10 simple ways to boost your savings, you can build a substantial savings account over time and achieve your financial goals.
Reference
- American Psychological Association. (2020). Stress in America: Coping with Change.
- Senator Elizabeth Warren. (2006). All Your Worth: The Ultimate Lifetime Money Plan.
- Bureau of Labor Statistics. (2020). Consumer Expenditure Survey.
- Employee Benefit Research Institute. (2020). The Importance of Employer Matching in Retirement Savings.
