This is the season people are evaluating their finances and making resolutions to improve them. It’s safe to say that many people will succesfully make the resolutions for the New Year.
And as reported by Fool, a financial expert website, the top goal of respondents in a recent Bank of America survey was to increase their savings, with 40% saying they wanted to increase their cash reserves. If that’s also your aim, here’s how you can do it.
1. Set up Auto-Savings
You can set up an automatic transfer on most bank accounts these days. In this way, you deposit money directly into your savings account, without ever touching the funds. With an automatic transfer, you can get your savings out of the way, making it easier to divide your remaining money between necessities and non-essentials.
2. Start a Side Gig
Saving money can be done by cutting back on non-essential purchases. However, let’s be honest – it’s not the most enjoyable way of life. There may be much resistance to giving up your weekly takeout meals, movie nights with friends, and yoga classes if these things help you enjoy life. You shouldn’t have to spend money on savings if you can boost your income to do so.
There are lots of side hustle opportunities these days, whether you decide to drive for a ride-sharing company, walk dogs or babysit. Or you decide to do social media marketing in your spare time. Make sure you know what your specific savings goals are in order to land the job that’s right for you. Take your schedule into consideration as well when picking a second job. You may want to find a side hustle that you can do only on weekends if your main job requires you to work long hours during the week.
3. Take Advantage of Windfalls Strategically
In 2022, you might have more money to spend. Whether it’s a tax refund, a generous gift from a relative, or a bonus at work for a job well done, there’s something to look forward to. Another stimulus check may even happen in 2022 – though we shouldn’t assume this will happen. In either case, you may be able to achieve your goals more quickly if you avoid using up your extra money.
A higher savings rate will provide you with greater financial security. Having three to six months’ worth of essential living expenses in the bank is especially important. In this way, you’ll have a safety net in case you lose your job or have an unexpected bill, such as a home repair, you don’t have the money to pay for. You can use these tips not just to reach your savings goals, but also to prove to yourself that you not only made a commitment, but also kept it.