Quickly growing your savings sounds like a daunting task. When it comes to saving money, sometimes it can feel like a slow process. You only make so much money; therefore you can only save so much money. While you may not be able to grow your savings a quickly as you’d like to, there are certainly some things you can do to help speed up the savings process. The CGS Team is sharing 5 tips to help you give your savings a nice boost in a short amount of time.
Send Anything Additional to Savings
Anytime you receive a tax refund, bonus or commission check, or any other unexpected lump sum, send it straight to savings. Not only will placing this money immediately into savings give your account a nice boost, it will allow you to avoid spending it. Out of sight, out of mind! The trick to making this work is to make sure you aren’t budgeting for this money, or if you are budgeting for it, you are including it as a savings amount. When you start planning on how you will spend this type of money, you will likely not be saving it.
Round Up The Savings
According to Money Talk News, “Some banks, including Bank of America, have programs that automatically round up debit-card purchases, and then transfer the extra amount into your savings account. For example, say your tall vanilla latte costs $3.50. Under this system, your bill would be rounded up to $4, with the extra 50 cents deposited into your savings account. That act alone daily would build the extra 50 cents to a painless $182.50 over the course of one year.”
Each bank has a different way of helping customers save. Another example is Wells Fargo. Instead of rounding up your savings, they transfer $1 into a savings account every time you use your debit card for a purchase. If you use your debit card often, this savings amount will quickly grow before your eyes.
Use Rewards Credit Cards
Disclaimer: this tip only works if you pay your credit card in full each month. If you rollover a balance and accrue interest, you aren’t saving anything. Using rewards credit cards is a great way to get some cash back for purchases you are making anyways. Most credit cards offer a points system, where every dollar you spend earns a certain amount of points.
Once you reach a certain points level, you can cash those points in for statement credits, electronics, travel vouchers and more. You can also opt for a cash back rewards system. Typically when you make purchases on your credit card, you will receive a certain percentage of those purchases in the form of cash. Make sure you use your rewards before they expire! Learn more about this strategy in the article 5 Smart Ways to Use Your Credit Card for Rewards.
Automate Your Savings
One of the easiest ways to save money quickly is to automate your savings. Have an automatic transfer scheduled every week from your checking to your savings account. You can also have a portion of your paycheck direct deposited to your savings account, so you don’t even have to see it in your checking. This may seem like an obvious form of saving, but if you are manually transferring your savings every week or month, you may not be saving as much as you can.
Always Check for Discounts
Does your job offer discounts for employees? Are you a student who can receive discounts at the movies or museums? Are you a part of an alumni or professional organization? If you answer yes to any of these questions, be sure to find out what perks and discounts are available to you.
Bank of America employees get a 10% discount on their phone bill if they use AT&T. Imagine how much money you could save by simply being knowledgeable of the discounts available to you. Also, check out the Asking for Discounts article for properly asking for discounts at certain stores.
Saving money can happen faster than you think, with the right strategies in place! How do you help give your savings a quick boost? Do you have any savings tips to share? Post a comment below to let other readers in on what works for you!