Every financially responsible adult should have a savings account set up and be socking away money into it. Unfortunately, even the most financially stable or responsible adults don’t have one. The reason for this hesitation is that many people fear they will have to give up enjoying and living their best life. Truthfully it is mind over matter when it comes to having a savings account in your budget.
You have to mentally psych yourself up to start and maintain a healthy savings account. But, you also have to find ways to save while still enjoying all that life has to offer. Therefore, you have to be creative with how you boost your savings account. Here are three great savings-boosting tips everyone should know.
Rework Your Bills
Many people don’t understand they can renegotiate some of their bills—even utilities. Call your utility companies and see about paying a fixed amount usually taken from an average of past bills for that address. If you overpay the actual bills by the end of the year, you get money back, or if you used more than expected, you might have to pay the overage at the end of the year. However, if you are diligent about keeping it within this fixed amount, this can save you big.
If you are a good driver, you can get insurance companies into a bidding war to get your business. They want customers paying in premiums that are low risk ever to make a claim. So they will make excellent offers to get you. You can also call your cable company and ask for the deals they are offering new customers.
If they say they won’t give you their loyal customer, let them know you will go to another company. You can do the same thing with your phone carrier, find out what offers they have, and negotiate them yourself.
The bottom line is, you should try modifying all of your bills, getting better interest rates after you have been paying on time for a period, or getting fixed payments. The most that any company you are trying to negotiate with can say is no, but maybe they will help you save money.
Your banking institution will normally offer you bank accounts that will cost them nothing. Do your research and make sure you look into every type of bank account provided. Some bank accounts offer cashback for debit card use or higher interest savings or checking accounts. Don’t settle for the plain bank account with no extras you are offered. If you do your research, you can save money by banking smarter.
The recent trend is banking establishments offering what is called a fusion checking account. This checking account is a checking and savings account in one, and it provides a higher interest rate. This rate increase will add up, especially if you steadily deposit into this account.
Make Great Investments
You are thinking you hardly make enough to cover bills. So how can I even think about investing? There are a few ways. First, if your company offers a 401(k), contribute as much as you can. Second, if your company matches a certain percentage, contribute that amount, so you get the most bang for your investing buck.
Micro-investing is something that a lot of new and experienced investors are implementing. It is one of the easiest ways to invest when you don’t have much wiggle room in your budget or looking for another stream of investment income. These spare change investment apps won’t make you rich or able to retire early. What they will do is give you the money you can use to pay down debt or put into more significant investments.
When you go for more significant investments, make sure you have paid down your debts and have an emergency fund first. Your priority should be getting out of debt and having the ability to cover emergencies and loss of income, then investments.
Whether you make huge changes to boost your savings or make small ones, the important thing to do is focus on your savings. Having a savings account can mean the difference between struggling and having financial stability.