
It is important to make sure you are growing your savings if you want to become financially secure.
It could be that you are trying to save for retirement or maybe buy a home; either way, it is a good idea to make sure you are growing various savings pots.
Let’s have a look at different methods that work well to help you boost your savings and achieve financial security:
Automate Your Savings
One of the best things you can do is automate your savings. When you set up your savings to come out automatically each month, you are more likely to meet your goals. You are also much less likely to spend the money you should be saving. Make sure you allocate a sensible percentage of your income to your savings each month. A common amount is 20%. If you are new to saving, start with a smaller amount, such as 10%, and gradually grow it. When you receive any bonuses, it could be a good idea to put this money straight into savings, too.
Be Wise About Financial Agreements
You will find that some loans or car finance deals may have hidden costs that aren’t apparent right away. If you have taken out a PCP deal on a car in the last seven years, then you may have paid more than you should have. In some cases, these have led to refunds due to potential misselling. Have a look at Car finance claims to see if you might be eligible for a refund.
Save Any Bonuses Or Unexpected Income
It can be very easy to spend unexpected income. However, these give you the perfect chance to grow your savings. When you get any bonuses, refunds, or other unexpected income, you should think about putting it into your savings account rather than your regular bank account. If you want to spend some of it, you should at least put half of it away in your savings.
Cut Expenses
You should be looking at your finances on a monthly basis to keep track, as well as looking at them more closely, at least twice a year. When you look at your savings in more detail, you can start to find ways to cut back on your expenses. This isn’t about cutting everything back; it's about finding savings in areas such as your energy supply or maybe your food shopping. Remember, your budget should be adaptable. This means that if something like your income or cost of living changes, your budget can, too. Another great way to cut costs is to get rid of services you are no longer using. For example, if you have a subscription that you no longer use, get it cancelled. It may not seem like much each month, but it will soon add up over a year.
If you use these four tips, you should be able to start growing your savings. Do you think you will start using any of the tips above? Let us know below.