It can sometimes feel like cash really does rule everything around you. The cost of living is higher than ever, and for many, it’s hard to even think about putting money aside for the future or for emergencies. If you need money quickly, you might want to consider an auto loan. Check out this Premium Car Title Loans post on how does a car title loan work to see if it’s a good option for you.
When you’re not in need of immediate cash, you should try to start saving. Here are some tips to help you start saving money easily.
Pay off Your Debt First
The first step toward saving money should actually be to pay off any debt you have. Debt is expensive, as you’ll be paying high levels of interest on any money you’ve borrowed, so paying it off should be your top priority. There is no point in trying to start a savings pot if you’re losing money each month through debt.
Make sure you’re in the black before you start planning to save, and you’ll be in a better position in the long run.
Open a Savings Account
It’s a good idea to open a bank account specifically designed to help you save. You’ll receive higher interest rates on the money you pay in than you would if you kept it in a regular current account, which is fantastic.
Another benefit of savings accounts is that they make it harder for you to access the money you pay in. Many savings account only pay high-interest rates if you make no (or very few) withdrawals for a certain period of time; this can be one, two, five years, or even longer. Adding money to one of these accounts means you won’t be able to access the cash once you’ve paid it in, so it will be impossible to spend it. It’s a great way to save.
Start Small
The easiest way to actually start saving is to begin by putting such a small amount of money aside each month that you don’t miss it. You could start with something as small as $1 a week. If you do this successfully for a year, that’s $52 dollars you didn’t have at the beginning of the year. It’s not much, but everyone’s got to start somewhere.
Another way to save in small increments is to use a service that rounds up any money you spend and puts the difference into an account or savings vault. If you spend $3.85 on a cup of coffee, this type of service will put 15 cents into a savings fund. It’s a great way to save without putting huge amounts aside all at once.
Set a Goal
It can be difficult to save when you don’t have a goal or target in mind, so give yourself an aim. If you’re saving for a particular purpose—a vacation, a wedding, or a deposit on a house, for example— it’s easier to remember why you’re putting money aside.
If you don’t have something specific in mind, give yourself rewards instead. Once you’ve saved a certain amount each month for six months, why get yourself a small treat or take your family out for dinner? Small bonuses will make saving feel more fun, and you’ll still be saving money overall.
Saving can be difficult, but with these methods, you can start a savings pot without feeling that you’re not able to have any fun. Start with small amounts and build up—you’ll be surprised how much you can save.
