Another year has passed, how was your savings? Most people are optimistic in the beginning of the year that they will definitely start saving, but sadly, not many can keep up with their words and instead, they find themselves broke at the end of the year. It’s time to change this seemingly yearly routine. This year, make it happen! Make sure to find ways to increase your savings and eventually achieve some of your goals in life.
We will share with you some effective ways to increase your savings by the end of the year.
- Spend within budget – first of all, it is advisable to come up with a weekly or monthly budget plan. This way, you will be able to calculate how much you should and can spend weekly or monthly. Include in your planning your expenses for bills, mortgage or other things you need to pay. And then set your budget for your allowance and make sure you spend within that budget only. Saving money does not mean that you will deprive yourself. Of course, you can still enjoy, have fun or go out but make sure that you will also set a budget for it and again, spend according to that set budget only.
- Start a small business – one of the most effective ways to increase your savings is by finding another source of income. You can start a small business most especially if you have a good idea or you have the capacity to start one. You can apply for a loan to help you start your small business. If it is your first time to apply for a loan, you can check out small business loan calculator to help you get an idea of how much you would be paying for a certain period of time.
- Avoid using credit cards – this year, you might want to forget about your credit cards. It does not help you but instead, it makes you think that you are capable of buying things that beyond your budget. Also, the charges and fees of credit cards are so high that it will drown you in debt most especially if you become reckless.
- Avoid splurging on branded items – do you love to buy signature items like clothes, bags, shoes and others? It’s lovely indeed but be sure that you know your limitations. You can buy 1 or 2 bags this year but stop at that. You do not want to burn all your income on branded bags.
- Skip unnecessary subscriptions or memberships – lastly, you should stop unnecessary subscriptions or memberships this year. For example, you’ve been paying your gym membership monthly without actually visiting, not even once a month. Then, maybe this year, you should cut it all off along with other subscriptions that you’re not actually using.
It is very important to know your priorities and you must stick to it no matter what. Do not let your urges make you forget that you are only allowed to spend within certain budget. It is also effective if you will set a goal at the beginning. For example, your target savings for this year is $100,000 or something. Then, you have a specific goal to think of. This will challenge you and will keep you motivated all throughout.