Saving money seems pretty straightforward, but many people have zero balance in their accounts. In the United States alone, only about 15 percent of the population has some money stashed away. What’s going on?
Well, there are tons of reasons why a higher percentage of the working population is unable to save money. And if you are in the same predicament, it is about time to reflect and maybe take better control of your finances.
Here are some great ideas as to how you can start putting some money towards your savings account:
Get Rid of Your Debts
Like what we have said above, lots of people are having a hard time saving money due to various reasons. One of the biggest reasons is because they are drowning in debts. So the first step that you need to take in this case is to get rid of them. Pay them off as fast as you can so you will no longer have to worry about the interest rates. Plus, if you are debt-free, you can sleep peacefully at night.
Lower Your Utility Bills
With all the appliances that you have at home, how much are you paying for your electric bill? How about your water bill? These bills right here can rapidly increase if you are not being conservative.
There are so many ways in which you can lower your utility bills. It is not that hard to turn the light out when a room is not in use. The same is true with your electronic appliances and other gadgets. Be mindful too when using water, particularly when you are doing the dishes or even brushing your teeth. The amount of money that you can save on your utility bills can go towards your emergency funds.
Plan Your Grocery Shopping
Grocery shopping is a challenging task because temptations are everywhere. If you don’t want to end up pushing two or three carts towards the cashier instead of just one basket, it will help a lot if you carefully plan your groceries.
Create a menu for the week and make a list of the things that you need. You can also have a rough estimate of your groceries so you know ahead of time if you can afford it or not.
I know how tempting to eat out especially when there is a newly opened restaurant nearby. But that’s only adding up to your expenses, don’t you think?
So instead of going out for dinner and spending a hundred dollars for just one meal, might as well look up a healthy recipe and make it at home.
Set Saving Targets
Just like anything else, it would be great to set a goal when saving money. If you want to buy something in the future, then give yourself a realistic time frame as to when you can save up enough cash. This will encourage you to stick to your budget
Round Up Every Purchase
Many people are already doing this and it is working really great. Whenever they make a purchase using their cards, they have it rounded up. The extra amount, even in cents, will be put in savings. They may be small amounts but they can quickly build up. It’s a really great strategy!
Open an Interest-Bearing Account
Having only one bank account is not really advisable. The tendency is that you’ll end up spending every dime in it. So to avoid that, you should separate your savings account from your checking. And as much as possible, go for an interest-bearing account so your money will grow too.