All I want to save up more money for a comfortable life, but not everyone knows how to do it properly. Publishing Reader’s Digest have collected the top 10 effective strategies that will help increase your savings.
Find the places where there are extra money
You can find a few dollars in the glove compartment of his car. Does your wallet gift cards through cash back, which you ignore, or overloaded payment card that you forgot? Perhaps you are increasing the balance in your PayPal account or Venmo whenever you sell something on eBay. This is the place where little going large sums.
Select inconvenient Bank
Great to do all your banking transactions in one place, especially if you carry out banking transactions via the Internet. But when the money saved is just a few keystrokes, even strong investors can resist the temptation to make a quick transfer to cover accounts or withdraw savings from an ATM “just this once”. Make savings in another institution, not where your regular bills. Destroy the ATM card to you had to do their banking in person. Select the Bank which is far away from your home or work. Choose a Bank that charges a large fee for withdrawals. Better yet, open tax retirement plan 401(k) or Ira, where withdrawals to 59 years entails serious penalties.
Pay, but continue to pay
If you finally make the last payment on the car or pay credit card or student loan, avoid the temptation to increase your spending or to accumulate new debt. Instead, aim at saving the same amount you were paying all those months. These tips for saving money will not change your standard of living, so you won’t notice any difference in your budget, but you will pay yourself, not the lender.
Save some of every windfall gains
You received a bonus or a large tax refund or a check from a relative is no reason to spend. Use the rule of thirds: put one third into savings, one third to reduce the debt on the loan, and the final third on something nice for yourself. This plan gives you the balance you distribute some of your unexpected cash in the past (debt repayment), some for the future (savings) and the rest on a gift for yourself.
Consolidated open a savings account
Realizing that people need encouragement to savings, the financial industry came up with a smart and painless way to do this: automatic savings. Every time you use your debit card to make a purchase or payment accounts, these accounts approximate the amount of the purchase to the nearest dollar and transfer the difference from the checks in savings and keep track of how much you save. It’s like a Bank, only virtual.
Use the app as a digital piggy Bank
The Acorns app works as a summary account, but with a twist sends a percentage of every transaction, down to the dollar, to the investment account. The good part is: you give your cash a chance for growth in one of five portfolios of exchange traded funds. Other apps offer a combination of stocks or bonds depending on how aggressive or conservative you want to be. The tricky part: since this is an investment account, the money saved thus is not insured at the Federal level, as it would be in the Bank.
Turn the process of accumulation in the game
Here’s a fun fact: put 5 cents in the Bank today. Tomorrow put a dime, then 15 cents the next day, 20 the next day and so on. If you continue to do this for an entire year, the most that you will need to put in the Bank for one day of 365-day is $18,25, and you will collect $3 339,75. Less regulated but more lucrative and cost-effective advice is: every time you get a 5 dollar bill, put it aside. Professor of Franklin College, Marie said that she earned $40,000 for 13 years.
Play on your smartphone
If you like to buy lottery tickets or play slot machines, a couple of new apps combine the consolidated savings with online gaming. Long Game works the same way as other combined reviews, but allows you to play online games for cash and prizes with the credits that you accrue on the basis of your deposited money. Although the prizes are real, your deposited money is never at risk: the greater your balance, the more credits you get. Another free banking app, Qapital, encourages its users to set goals of savings, so you invest your savings in order to “trip to Mexico” and not just in savings.
Do not be deceived on the counter of coins
Some banks still think coins for free, and almost all provide a paper wrapper for your coins. The ubiquitous kiosks CoinStar quickly turn your pile of cents in cash, donations or gift vouchers, but be cautious over the use of cash Commission in the amount of 11.9% (which can vary depending on location).
No Commission is charged if you take the value of the coins in eGift cards from national brands, including Starbucks, Amazon, iTunes, Lowe’s and Southwest Airlines.
Reduce your current expenses to save money
A quick overview of your expenses will show the gym membership that you never use, monthly charitable contributions, and subscriptions to magazines or services streaming music, without whom you can do. Then find a few hours to call the insurance providers, cable television, Internet and mobile communications. If you are a long time customer, your rate could jump without your knowledge. Communications company and insurers know that to lure a new customer is much more expensive than to retain the old, so a few minutes of talking on the phone, asking about discounts will help relieve the rates and save you hundreds of dollars.