5 Proven Tips To Build Your Savings
It's not too late to start your New Year's Resolution and build up your savings. Here are a few recommendations to help you build your savings and be on your way to financial freedom.
1. Make a Grocery List
One of your largest controllable expenses is food.
To save money when going to the grocery store, start planning. Create a shopping list, find discounts, and most importantly: stick to it. This way, you will find the best deals and avoid impulse purchases.
2. Pay Off High-Interest Debt First
When you're responsibly tackling your debt, it may be unclear which payoff strategy is best—especially if you've got several accounts of varying amounts and interest rates.
Paying off your highest interest debt is the best way to help you save money because it works for you in the long run. You will save the most money if you get rid of high-interest debt as quickly as possible! However, if you’re paying high-interest fees, it will be near impossible to pay off your debt quickly.
3. Use a Credit Union Instead of A Bank
Banks are great and all but look for credit unions in your area. Many credit unions tend to have far fewer fees and better interest rates for loans. With banks, you’re a customer, with credit unions, you’re a member. Banks aim to make money off you, while credit unions have your best interest in mind.
4. Only Keep One Credit Card
If you’re in college, you’re going to get A LOT of offers to sign up for credit cards. Don’t fall for this trap. It will lure you into immense debt if you’re not careful.
Credit Card companies love to target younger individuals because they’re young, naive, and prone to be impulsive. If you are holding more than one card, chances are you’re going to rack up a ton of debt.
Keep just one, pay off your balance at the end of each month, and only spend what you know you can pay off.
5. Cash Only Budget
When you have your cards on you, it’s easy to overspend. When you have a specific amount of cash in your wallet, you can only spend what you have. The theory is that if you’re limiting your spending to just what you have in your wallet, you won’t overspend.
This is a great approach for people that don’t have the greatest self-control when it comes to spending or those that make impulse purchases.