Setting aside extra cash can be very difficult but you can make it easy for yourself by applying expert saving tactics
Improving your bank balance once in a while can be as simple as unwinding and giving your cash a chance to work for you – as long as you have the correct strategy set up.
On the off chance that you wish to save much money in a year but you’re scared that you won’t achieve that goal because you splurge a lot, well here are some expert tips to help you save more money:
1. Earn rewards from checking accounts.
A savings account isn’t the only way to boost your balance. Some checking accounts, particularly those at online banks and credit unions, offer rewards – including cash back on purchases, good interest rates and new customer sign-up bonuses – that you can use to score extra money.
Get started: Search online for rewards checking accounts, then check their terms. Some offer cash back for purchases up to a certain amount monthly. Others might require that you make a certain number of debit card transactions – usually around 15 – to get a high rate.
This can be OK if the purchases are part of your regular spending budget, but avoid making extra purchases. The sweet spot is an account that matches your current spending activity. So you’re doing nothing new – and getting rewarded for it.
Let your money work hard so you don’t have to. With a little set-up work and the right accounts, you can sit back and watch your money grow.
2. Use “set it and forget it” transfers.
Once you have a savings account that earns a good rate, set up an automatic payment plan to make regular deposits. Say you get paid by direct deposit to your checking account every two weeks. If you set up a $40 transfer to savings each pay period, you’ll stash away over $1,000 by this time next year. That’s not counting the additional interest your savings will earn.
Bonus: Since the transfer whisks money from checking to savings, the cash won’t be as easily accessible with your debit card, so you may not be as tempted to spend it.
Get started: Log into your checking or savings account online and select the option for bank transfers. You’ll typically choose the amount of the transaction, frequency and length of time. Although the sending and receiving accounts don’t have to be at the same bank, make sure your financial institutions don’t charge transfer fees.
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3. Put your funds in a high interest yielding bank account.
The interest rates offered on investment accounts at most banks is under 0.1 percent. If this tactic is properly employed, you could earn more than 10x of your initial deposit.
Depositing $1,000 in an account with the normal interest yield rate, for instance, makes a couple of bucks in a year. However if that deposit is made into an account with higher interest rate, you could easily earn extra $150, excluding other deposit costs. Online banks in general and some credit associations will in general offer accounts with higher rates, and most checking or investment accounts do not have monthly charges incurred
Employing this tactic effectively can easily help you add extra $1,000 to your account or more depending on the amount you’re willing to invest.