Having savings gives you financial freedom and allows you to plan for a secure and comfortable future. Building savings also means that you can treat yourself to luxuries such as vacations, new products, or home upgrades. Luckily, there are various simple ways to maximize your income and save more each month. Here are five ways to boost your savings today.
1. Lower your expenses
One of the first steps to boosting your savings is to review your current expenses and try to identify ways to cut your spending. Write a list of all your monthly expenses, including necessities such as utility bills, mortgage repayments, phone and internet packages, and so on. Make sure that you also make a note of the average amount you are spending on non-essentials such as social activities, dining out, and clothing items. You then need to try and identify any expenses that can be reduced. For instance, you could downgrade to a cheaper mobile phone and internet contract or limit meals out to once a week to cut your spending. This will help to lower your expenses and allow you to save more each month. You must stay on top of your finances and track your spending closely to avoid going over your budget or spending money on unnecessary items.
2. Consider equity release
Equity release can be a reliable way to improve your savings and plan for your financial future. Broadly speaking, equity release provides a way for people over the age of 55 to take cash out of their homes without having to move to another property. The lump-sum cash is tax-free and can be put towards a more comfortable retirement or used for large purchases such as a new vehicle or home improvements. Several different equity release options can help you get some extra money when you don’t want to move home. You can use Key’s equity release calculator to receive an estimate on how much you could receive from using equity release on your property.
3. Put yourself in a better financial position
One simple way to boost your savings is to be in a better financial position overall. This could mean boosting your current income. Luckily, there are plenty of easy ways to make some extra cash. You could start driving for a company like Uber, delivering food for GrubHub, or hiring out a spare room on Airbnb. However, you could also try asking your manager whether they would be able to offer you additional hours and overtime to increase your income. If overtime is not a possibility, you could always ask for a promotion. Not only will this boost your resume, but it will also boost your income and, in turn, your savings. If they are unable to do that, consider whether your skills are better suited to another job that is willing to pay more.
However, if none of the above ideas work for you, setting up an online business can be another effective way to boost your monthly earnings. There is a wide variety of online businesses to choose from, such as blogging, content writing services, tuition, and web design. Setting up an online business is fairly simple and affordable, meaning it has minimal risk. One of the main benefits of running a business is that you can pick your own schedule and fit work around your current commitments. According to entrepreneur.com some of the best ways to make money from home include becoming a virtual assistant, selling items on eBay, and offering services on Fiverr.
4. Switch to a hybrid checking account
Most people have a savings account that earns interest and a checking account that is used for daily transactions. Switching to a hybrid account will allow you to enjoy all of the benefits of a savings account and a checking account at the same time. This means that you can take advantage of high-interest rates and still have the convenience of a checking account. You should also consider moving your cash into a high-yield savings account, especially if you have a fair amount of savings. This simple action can have a significant impact on your savings. For example, if you have $10,000 in a savings account offering a low-interest rate of 0.2%, then you will only earn around $20 per year. Whereas, you would earn $200 if you were to move this into a high-yield savings account offering 2% interest.
5. Freeze your credit cards
Stopping the use of credit cards can be an effective way to limit your spending. However, it is a good idea to still keep your credit cards as you may need them for large purchases in the future. Credit cards can also be used to build a positive credit score. Fortunately, you can easily freeze your credit cards by contacting your credit provider and requesting that they freeze your account. You can then simply request to unfreeze the account as soon as you want to use the card again.
Use the above strategies to boost your savings and start working towards your financial goals today!