Growing your piggy bank is the key to your future. Diligent savers can potentially save thousands of dollars without putting in any real effort at all.
Unfortunately, most people don’t get this far. They either think the entire concept is too difficult or they just don’t apply themselves. In today’s guide, we’re going to show you several easy ways in which you can grow your piggy bank.
Pay Yourself First
Put money into your savings account before you start paying other people. Payroll deduction is a great way to do this because a portion of your salary will be automatically deducted prior to hitting your current account.
It’s an easy way to force yourself to save.
Keep Increasing the Amount You Save
Always start small when saving. But gradually ramp up the amounts you save when you get into the habit of doing so. This is easy to do as many banks have mechanisms that allow you to keep rounding up the amounts you save when you decide.
This may require some self-discipline, but it’s a behavior that could change your life.
Keep Track with Apps
There are lots of apps that will combine data from all your bank accounts together. Some will even track your expenses. One example of this is the Mint app.
The first step to growing your piggy bank is to stay informed. Just be aware that you should install a VPN to add an extra layer of security to your money. Help can be found from this tutorial from Troypoint for setting it up.
Cut Out Needless Expenses
It’s amazing how much money Americans waste every single day. That Starbucks coffee you get every morning? That could cost you $35 every single week. Now imagine if you eliminated that overpriced coffee and put the proceeds into your savings. It all adds up.
Go through your expenses and figure out what you can get rid of.
Invest in Your 401(k)
Think about retirement early.
Most employers will have a pension scheme, where they will match anything you put in (up to a certain amount). Invest the maximum in it every single year.
Over the course of a working life, this can provide you with up to seven figures.
Bank Your Points
Some guides might suggest that you stick to using cash so you always know how much you’re spending. This is a good piece of advice if you have a shopping addiction, but for everyone else, there’s no reason to do this.
Use your credit card and always pay off the balance immediately at the end of the month to avoid incurring any interest fees.
Building up your credit score will allow you to take out loans at a better rate and most credit cards offer rewards for using them. These points can be converted into things like free flights, money back on shopping, and discounted hotel rooms.
This is definitely a creative way to save money!
Pay Off Your Debts
Probably the best piece of advice you’ll ever get is to pay off your debts and pay them off as soon as you can. They’re a drain on your financial resources and will only make it harder to save.
Pay the debt with the highest interest rate first and adjust your lifestyle so you can pay down your debts more aggressively.
Last Word – Start Earning a Fortune Today
Some of the richest people in the country have earned their fortunes through simple lifestyles and smart savings. You don’t have to be a big businessman to become a millionaire these days.
Simply managing your money by following these tips can enable you to save a fortune over the course of your working life.
How are you going to save more?
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
