6 Ways To Jump Start Your Savings

Saving money is an important and healthy financial habit. The stronger the saving culture, and the earlier you begin, the larger your savings can grow over the years. Savings give you short term flexibility and long-term security. There are three types of savings: rainy-day fund or emergency fund, retirement account, and discretionary spending account.

The rainy-day fund gives you peace of mind and extensive protection against unexpected financial problems. Medical emergency, sudden loss of income or even a broken-down car can be fixed with a rainy-day fund.

A retirement savings plan will help you save towards your retirement. This gives you financial stability after retirement and in your old age.

A discretionary spending account gives you the leverage to enjoy your hard-earned money. You can use this fund to buy a car, a land, or a house.

6 ways to jump start your savings

It’s important to pick up a pen to write down a budget and track your spending. This will help you track where, how, and when you are spending your income. It will also help you fight the money-saving-spending war that is constantly going through your head and put you in charge of your income and savings.

Decide on what percentage of your income to put in an emergency fund, what percentage should be for discretionary saving, and what part to put in a retirement account. A good way to solve this problem is to decide on your major projects for the period and let that decide your saving percentages.

Do it with someone. Saving with your spouse or even trusted friends will give your savings a boost, and some sort of challenge to put more into your savings account. You can save for a specified period with a life savings plan and achieve your financial goals.

Automate your savings as much as possible. After deciding how much you need to save monthly, or weekly, automate your savings such that it is deducted by your bank on a particular day of the month. With this, you’re making your savings regardless of your expenses and bills.

Although inflation rate is currently high, cutting back on your expenses can help you save more or at least maintain your saving quota. You can also try to negotiate a better deal in the marketplace, as this can save you some expenses. Go through your monthly bill and cut out on frivolities. A good idea is carpooling with your colleagues to cut your fuel expenses.

Consider getting a side-hustle to earn more. To save more, you may need to earn more. Side-hustles are good ways to earn more money. The side-hustle income can be used to cover your day-to-day expenses while you save your main income.

Increasing your savings begins with budgeting, and then earning more income. Also, starting early is very important in jumpstarting your savings.