5 Ways to Add Extra Savings Each Month

We’d all love to consistently add money to our savings each month, but sometimes it’s not so easy. Even to add extra savings each month can prove difficult.

It takes dedication and hard work to keep building your savings, but the benefits are well worth the effort. Whether you’re saving up for a rainy day, or have a more specific goal in mind, a good savings pot can help you achieve a lot.

5 Ways to Add Extra Savings Each Month
5 Ways to Add Extra Savings Each Month

So, how can you go about making sure you put away a little bit more money each month? Here are some tips that will help you along the way.

Do Your Budgeting to Add Extra Savings Each Month

If there’s one sure-fire way to find a few extra pennies to put in your savings each month, then it’s by understanding your finances and planning out a budget. This is a really easy step, but there are lots and lots of people who don’t do it.

Sit down and write out all your incomings and outgoings, and find areas where you can reduce your spending. When you can see everything clearly, you’ll generally find there are some expenses you can easily cut out.

The better you do this; the more money you will find you have left over to add to your savings.

Go Through Your Direct Debits

Subscriptions are extremely common features of modern life, and most of us have at least a few direct debits coming out of our accounts. The thing is, it’s easy for these direct debits to continue even when you’re not using a product, and they can really start to add up.

While you’re doing your budget, make sure you highlight the payments that are direct debits and decide whether you actually need them. There’s no point paying for gym memberships and other subscriptions that you barely use, so cancel them.

If you get rid of a few direct debits then you can easily free up an extra $100 or so to add to your savings each month.

Pay Your Bills on Time

When you pay late fees on your bills you might as well be taking that money straight out of your savings. If you’ve got lots of bills going out all at different times, it can be difficult to keep track and make sure you’ve got enough money in your account at the right time, but it’s much easier if you create a bill payment calendar.

Avoiding needless late fees makes it much easier to pay off your debts, and leaves you more money to put into savings.

Make Sure You’re Getting a Good Interest Rate

Interest rates certainly aren’t great at the moment, but that doesn’t mean you should just accept whatever rate you get given. There are some savings accounts out there that will give you better interest rates, so it’s worth looking around to make sure you’re getting the best deal.

It might not equate to massive savings depending on how much you have in your account, but it all helps, and you might as well make your money work as hard for you as you can.

 

Invest Your Money

If you’re looking for a slightly bigger return than your savings account can offer you, then it might be a good idea to look at making some investments. If you look at something like Bitcoin Era – then you can see that there are viable options to make a good return on your money.

Of course, there is always risk involved with your investments, so make sure you’re comfortable and familiar with what you’re doing. However, if you want to see your savings pot grow a little quicker, then this can be a great option.

Stay Disciplined

When you see your bank balance beginning to grow it’s tempting to lose your discipline and start taking money out for the wrong reasons. You’ve got to remember the reasons why you started to grow your savings in the first place though and continue to work hard at it.

Goal setting is a great way of keeping you on track with your savings, so invest some time into writing them down.

It’s not always easy building your savings, but with discipline and continued effort, it can be done.

( Photo by investmentzen )

3 Responses to 5 Ways to Add Extra Savings Each Month

  1. When I first started getting serious about my financial situation I remember looking over 90 days of my credit union statements. I couldn’t believe what I wasted my money on. I was pretty angry at myself on how stupid I was. Its a real eye opening experience. The one thing you are really right about is being disciplined about your money.

  2. Hi Beau – Don’t be too hard on yourself – at least you had that moment of revelation. Millions of people go through their entire lives and never do. But you’re right, it can be shocking to see how much money we waste. In a way it might be an advantage though. It’s only when you become aware of how much money you waste – and how it can be better employed – that you begin to “get religion” about your finances. Otherwise, we tend to tool along riding on automatic pilot. That trend of seeming normalcy is what needs to change before we can make any progress. Pat yourself on the back for having that moment.

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