Imagine you’ve tried everything you can think of to save money, but you can never seem to save enough. Fortunately, there are some saving strategies that you may not have thought about.
Give a few methods a try when your emergency fund needs a boost. Then, you may be able to keep up with those methods over time.
Read on to learn more.
Pay Off Debt
One of the best ways to start saving money is to pay off any debt you have. It may seem counterintuitive to pay off your debt more quickly because you’ll have less money to save now.
However, the sooner you pay off your debt, the less you’ll have to pay in interest. Once you do pay everything off, you can start saving the money you used to use for debt repayment.
Depending on how much debt you have, paying it off may free up a ton of room in your budget. Then, you may be able to save a lot of money without decreasing the amount you spend each month.
Choose the Right Bank Account
Another one of the best saving strategies is to compare bank accounts. For one, you shouldn’t keep all of your money in your checking account.
Even if you think you won’t touch the money you want to save, separating it offers a few benefits. You can open a high-interest savings account so that your money can earn compound interest each month.
The account may not make you a ton of money. However, it’s better than keeping all of your money in a checking account that won’t earn you anything as it sits there.
Make Saving Part of Your Budget
Creating a budget is crucial if you want to reach your financial goals, especially if you don’t make much money. As you make your budget, include savings as a category.
Then, treat that amount like any other bill you have so that you save money each month. If you don’t trust yourself to remember to save money, you can automate savings.
Some banks will let you set up automatic transfers on a recurring basis. So you can make sure to transfer the right amount to savings each month.
Get Rid of Any Subscriptions
As you go through your budget, take a look at any subscriptions you have. Maybe you still subscribe to a streaming service that you hardly use, and it costs you a lot of money over time.
Take the time to cancel that subscription or at least downgrade to a lower tier. That way, you won’t waste money on a service that you don’t need, and you can put that money in your emergency fund or another savings account.
If you still want to use a certain subscription, make sure you will use it so that you don’t waste the money. Alternatively, ask a friend if they would use the service and then you can split the cost.
Think Short and Long Term
Even the best saving strategies can present problems if you don’t focus on the short and long term. Saving for the short term is good because you can prepare for an emergency or to buy a house, for example.
However, you also need to think about putting money in a retirement savings account. Be sure to contribute money to your retirement account each month.
You may still have a few years or decades before you retire. But saving money now will allow you to save more due to compound interest over time.
Fortunately, you don’t have to save hundreds of dollars a month for retirement. Figure out how much you can afford to save each month and commit to saving that amount.
Cut Your Expenses
While getting rid of subscriptions is great, you can cut other expenses to help save money. For example, you may choose to reduce the number of times you eat out in a week.
Or you might decide to get a roommate to save money on rent and your utility bill. If you’re still relatively young, you might decide to move back in with your parents to save money.
Think about how much money you need to spend each month on things like food, transportation, and housing. Then, try to reduce the other categories of your budget and put the difference in your savings account.
Set No-Spend Periods
Maybe you can’t cut out an expense long-term, but you still want to save a bit of extra money. In that case, schedule a day or week where you don’t spend any money except on necessities.
This will force you to think about whether you need something or not. If you get a craving to eat out, for example, calculate what you would have spent and put that money in savings.
You can determine what counts as a necessity or not. For example, going to a movie with a friend isn’t necessary, but repairing your car is.
No-spend days and weeks can be hard in the moment. But you may save a lot of money, especially if you schedule a no-spend day or week regularly.
Save Your Spare Change
One of the best saving strategies is to put aside your spare change. You can do this if you use cash by putting the change you receive in a jar at home.
However, if you use a credit or debit card, you can connect a savings app. The app will then automatically transfer extra change to your savings account anytime you purchase something.
For example, if you spend $4.50 on lunch, the app will transfer the remaining $0.50 to your savings account. This strategy may not build up your savings quickly, but it can be an excellent addition to any other strategy.
Save Specific Bills
If you use cash frequently, you can also determine a specific bill to save whenever you receive it. Perhaps you decide to save every $5 bill that you get back from a cashier.
Like saving your change, this is a small way to start saving more money. You can set up a jar or another safe place to keep your $5 bills, and you can deposit them into your savings account each month.
Even if you don’t use cash that often, you can still make this strategy work. You might decide to save any cash you get back so that you can still enjoy the benefits of saving money.
Take on a Side Hustle
Many people are starting side hustles to increase their income. If you have the time and energy, you can start your own side job to work on outside of your regular work schedule.
Some side hustles to start include:
- Dog walking/sitting
- Babysitting
- Rideshare driving
- Food delivery
Whenever you earn money from your side hustle, put it into your savings account or toward your emergency fund. Then, you’ll still have the money you earn from your day job to spend on daily expenses.
However, you won’t have to feel like you’re neglecting your savings goals. Make sure you choose a side hustle you enjoy so that you’ll have the motivation to work on it when you don’t have much time, and you can persevere if you don’t make money at first.
Look for a Better-Paying Job
If you don’t have time for a side hustle, or you do but need more money to save, look for a different job. You can find a job in the same industry as your current job or in an industry you want to work in.
Regardless, the jobs you apply for should pay better than your current role. If you land a better job, put the extra income in your savings account and keep your spending the same.
This is one of the best saving strategies for people who can’t cut any expenses. Of course, it can take time to find a better-paying job, but you will eventually be able to save more money.
On the other hand, you can ask your current boss for a pay raise. This is especially smart if you’ve worked for them for a while and haven’t received a raise in a while. Like with a new job, be sure to save the extra money.
Save Unexpected Income
Whenever you receive money for a birthday or a holiday, save it. You weren’t expecting that money, so you weren’t planning on putting it toward anything specific.
It can be tempting to use the extra cash to treat yourself. However, if you’re tight on money, saving it is your best bet because you can maintain your spending habits.
You can also save any money you get from tips at work or a side hustle. Then, you’ll be able to increase your savings account balance more easily.
Which Saving Strategies Will You Use?
When looking to grow your savings account balance, you should consider multiple saving strategies. From saving specific bills to starting a side hustle, some strategies are better for you than others.
Think about your situation and which strategies are the most realistic. Then, you can implement them and watch your savings account balance grow.
Do you need a bit of extra cash to kickstart your savings goal? Request a loan today.