Increasing your personal savings is a process that can only occur over time. Just like starting off your savings, increasing your direct deposit can be scary; however, it is one of the steadier ways to increase your personal savings. If you’ve been struggling with finding different ways to increase your personal savings, we are here to help. Here are six (6) ways you can increase your personal savings with little to minimal effort.
1. Be Realistic
One of the main reasons why plans to save fail is because they are not realistic. Give yourself realistic goals that you can meet. A simple way to make goals more realistic is to split them into smaller goals. To learn how to do this, keep reading.
2. Have Specific Goals
You must have a specific goal in mind. Goals help you stay focused and consistent. A great goal-setting system would be this;
- Split your main goal into smaller time-specific goals.
- Give your goals names
- Place your goals somewhere you can see them regularly.
- If you can, incorporate weekly saving goals into your system.
If you are unsure on how to go about what a savings goal should be, a great goal is to have an emergency fund. Emergency funds should be at least 6 months worth of spending money. This will include your rent, your car bills, other utilities, and expenses you have regularly. An emergency fund is a necessary back-up plan to have. Once you complete your first emergency fund then you can make two, three, or even four-year emergency funds. This will give you a steady goal to follow while you brainstorm some other goals you might be interested in. Other savings goals include purchasing a home, a car, saving up for a trip, or even starting a retirement plan.
3. Use a Savings App
Savings applications are very beneficial because they can be automated and you can easily check how far or close you are to your savings goals.
4. Budgeting to Save Extra Cash
This might seem like an easy task, but in most cases, it isn’t. When you get serious about increasing your personal savings, certain sacrifices must be made. To figure out how much extra cash you have, you need to make a budget. It can take you a month or two to understand your budget. For that time period, you’ll need to record every single expense you have. The recurring expenses are most likely necessities; the extra expenses are where you will place most of your focus. Figure out the expenses that can be avoided, and then place the extra cash in your personal savings.
5. Have Automated Savings
When you get paid, there should be a fixed amount of money always going into your personal savings account.
Investing is one way to make passive income with your savings. If you have a low-risk tolerance, then opt for mutual funds, but if you have a higher risk tolerance, you can dabble in the larger stock market.