You’ve heard it all: create an emergency fund, stick to a budget, track expenses… and although these are all successful ways to save for your future, they’re not always suitable for every financially-savvy person. There are many ways you can save or build a nest egg, and some are more conventional than others.
One of the easiest ways to save is to automate your savings payments. When you’re payment is deposited, you can set up a payment order so that a set amount is transferred to your savings account each month. You can stay on top of your savings goals as you’ll be able to track all the money going in on a set schedule. It’s the perfect solution for those who are tempted to spend their paychecks as soon as they land. By instantly transferring funds, you will start earning interest immediately. You’ll also be forced to make it work with less money available in your current account, learning to work within a budget.
Digital assets like cryptocurrencies are slowly becoming more mainstream, but to many, they’re still an alternative investment method. Traditional savings accounts grow slowly, and investing in cryptocurrency may offer higher returns. Of course, it does come with some risks due to the volatility of crypto, so make sure you only invest what you can lose. The key is to research carefully and diversify your portfolio. You can keep an eye out for the next crypto coin to explode to get in early on strong projects.
Paying money seems contradictory to saving, which is why so many of us are stuck with debt. But, monthly debt payments can be a burden on your ability to save, so prioritize paying off debt quickly, especially any high-interest debts you have. When possible, make extra payments or pay a bit extra to the principal balance. You might want to put that money in an interest-gaining account, but the sooner you’re debt-free, the sooner you can save.
Are you even aware of how much your monthly subscriptions cost, or how many services you’re subscribed to? You can review your bank or credit card statement to see exactly how much of your income is heading straight into the pockets of subscription services, and cancel those that have become too expensive or that you never use. If you’ve ever signed up for a free trial, you may have forgotten, and suddenly you find yourself paying for a service you only used for a few days. Manage your subscription spending and cancel anything unnecessary. It seems simple, but you’ll be surprised how much you can save.
If you had a piggy bank as a child, then you know the value of steadily adding a few coins to your piggy right before you get your next allowance. The same holds true for adults with bank accounts. At the end of each month, you can review how much you’ve spent and set aside any disposable income remaining. You are likely tempted to use the funds to buy yourself a treat, but it will earn more in interest and place you in a better financial situation in the future.
