5 Ways to Boost Your Savings
It’s no secret that the key to financial success is saving as much of your money as possible. Whether you’re building up an emergency fund or planning for long-term goals such as retirement, a consistent savings plan will play an instrumental role in your present and future financial stability.
So, how can you set yourself up for a financially bright future? Here are a few ideas on how to save money to get you started.
- Reflect On Your Financial Goals
The first step to boost your savings is to reflect on and identify your financial goals. For example, maybe your goal is to save for a down-payment on a home or pay off debt. You can achieve these goals faster and more efficiently if you know what you’re working towards. Additionally, knowing what you want to achieve can help you stay motivated and on track.
- Create a Savings Plan
Now that you have clarity on your financial goals, it’s time to create a savings plan to help you achieve them. You want your savings plan to follow the SMART method. Let’s take a closer look at how using the SMART strategy can help you achieve your goals.
What is the SMART method?
- Specific: You want your plan to be specific. For example, instead of saying, “I will save money.” Try something like this: “I will save $100/month towards my goal of owning a home one day.” Which goal do you think is more likely to be achieved?
- Measurable: It’s important for your savings plan to have measurable milestones along the way so you can track your progress and stay motivated. For example, say the total amount you need to save for a home downpayment is $10k. Break that up into smaller goals along the way.
- Achievable: Your savings plan needs to be realistic for it to be successful. An achievable savings goal is challenging but possible with hard work and dedication.
- Relevant: This step is about ensuring that your plan is helping you attain a goal that matters to you- which is why it’s essential to take the time to reflect on your financial goals.
- Timebound: Having a timeline for your plan will set you up for success and ensure you stay on track.
- Cut Expenses
A great way to increase your savings is to cut expenses. The first step is to review your bank account transactions to identify any expenses you can do without. One easy way people trim costs is to cancel any subscriptions they no longer use, such as gym memberships, apps, or streaming services.
- Get a Side Hustle
Another way to boost your savings is to get a side hustle to bring in some extra income. This might be the right option for you if you already reviewed your expenses and realized nothing could be cut. Some side hustles to look into are: reselling clothing you no longer need, dog sitting, or becoming a ride-share driver.
- Maximize Your Cash Back
Maximizing your savings by utilizing cashback offers is another great option. For example, cashback credit cards pay you back a certain percentage of what you spend and can add up to significant savings over time.
Check out our latest cashback offers here.