Are you having any issues with your savings attempts? While easy in theory, it can be more difficult to build up a nest egg than you realize.
You never know when you’ll have to dip into these savings. A financial emergency such as home repairs or medical bills can strike when you least expect it, wiping out your savings in the blink of an eye. This is also applicable if your career or business takes a downturn.
If you are struggling for whatever reason, here are five tips to instantly improve your savings strategy.
1. Get expert advice
It can seem a little obvious, but most regular folk will overlook the need for a financial advisor. Yet this expert advice can supply you with the foundation required to significantly build up your savings pot.
If possible, opt for an expert that is local. If you live in Stuart, Florida, for example, you want a financial advisor in Stuart, Florida. Aside from the knowledge and skills you’d expect from a reputable firm, a local advisor is closer to you – and that means you can meet and discuss your savings in person. Their close proximity also means they are familiar with the area and any specific rules that could be in place.
2. Cut back on your expenses
Although it won’t deliver instant results, reducing the number of expenses will help to make significant changes overall for your savings efforts.
As an example, say you decide to quit the gym and cancel your membership. Although the extra $40 you save each month due to this won’t make much of a difference straight away, it can quickly add up. Over just a single year, canceling that gym membership can help to save close to $500.
That’s just one expense. If you manage to remove multiple outgoings from your plate, that could result in significant savings.
3. Have a dedicated savings account
If you don’t already have one, it is essential you put together a dedicated savings account. Separating your savings from the money you use for daily needs is needed from a psychological point of view. With a savings account, you are less likely to dip into this pot to cover your normal expenses and instead budget more effectively with your day-to-day budget.
4. Add a side hustle
One of the most effective methods to increase your savings is to add an extra revenue stream. Along with your usual form of employment, a side hustle can be utilized to bring in a lot of extra cash. This side hustle can be anything from reselling to freelance work.
5. Sell off unwanted possessions
Another great tactic for a quick injection of cash is to sell off your unwanted possessions. Whether you go the traditional route with a yard sale or opt for an online marketplace like eBay, it is an effective strategy to bring in more money. Plus, an added bonus is you’re able to declutter your home in the process.