There are hundreds of different finance tips – ranging from simple things you probably already know, such as avoiding unnecessary spending. However, other tips seem pretty outlandish, like having your total salary amount in your savings before you are 30 years old. Vague, right? Though some highly goal-oriented folks might be able to pull this off, most people truly struggle with putting this kind of money away, especially in high amounts.
Don’t feel overwhelmed – focus your attention on smaller and more valuable tips rather than large leaps in order to manage your money. If you work on money management tips that you can do in minutes rather than extremely broad goals, you will end up feeling much more accomplished.
For example, if you stop spending $3 per day on coffee (even though it doesn’t seem like much), you will save up to $3,000 every year. These types of tips work in an opposite direction – completing them will only save a tiny bit of money at first, but the end result will be pretty astonishing. In addition, your savings will really start to stack up.
Let’s take a look at the top 7 surprising tips that are centered around actionable savings goals, which in turn will help you get into shape monetarily.
1. Challenge Yourself to go 1:1 with Spending and Entertainment
Just how it sounds, commit to matching your entertainment and spending by depositing into savings for every non-essential purchase. Let’s say you are getting your nails done. Great. Well, stick an additional $60 (or more) into your savings account. $20 on your favorite phone game? Put $20 in savings. Not only will your savings account surely grow, but you will really start to consider if you really need to make these non-essential purchases in the first place.
2. Ditch Paying for Savings and Checking Accounts
It’s 2021 – time to get rid of any bank that is charging you a monthly fee just to have their checking or savings accounts. Surprisingly enough, many banks charge $5-$10 every month just to use their services. You can easily combat this by finding a bank that waives monthly fees by keeping a minimum balance, depositing a certain amount every month, or fulfilling another requirement. There’s also tons of fee-free checking and savings accounts such as Chime, Varo, and Lili. Financial gurus suggest that once you’re fee-free, deposit what would be that fee into savings every month and watch your savings grow.
3. Check Your Saving Account’s Interest Rate
Your savings account might be working against you even if you are regularly putting money into your account. Why? Your interest rate on your savings account might be shockingly low (lower than 2%) and it’s stunting your growth. Most banks have a higher than 2% interest rate, but some savings accounts have lower rates meaning that you will barely be saving anything. Higher rates mean that you will earn upwards of $100 every year for maintaining a savings of $5,000, without you doing anything at all. Boost your savings efforts easily by simply shopping for higher interest rates.
4. Boost Your HSA (Health Savings Account)
HSA’s are absolutely wonderful and they have tons of benefits. Do you frequently stress about potential medical emergencies or worry about paying for your monthly medications? Boost your HSA. It’s a great way to not only save some tax money, but also reduce the amount of money you might have to spend on out-of-pocket medical expenses.
5. Forget About the Raise You Just Got
Just because you’re making more money now doesn’t mean you have to spend it! Getting a raise is the perfect excuse to begin saving more. Try living below your means, even if it’s just by a little bit. The pros suggest that you let this new money earn interest in a high-interest savings account.
6. Remove Your Auto-Saved Credit Card Numbers
You’ll notice that most online stores have a setting in which you can keep your credit card on file in order to check out faster. This is a convenient feature, but it can easily lead to mindless spending, especially when you never have to pull your card out of your wallet. Professional financial advisors suggest that you remove your cards from this feature. Now, if you still really want to make the purchase, you have a few minutes to decide if it’s a good use of the money. Take time to pause and ensure you’re making a good purchase.
Saving money does not have to be a grueling process. With these simple tips, all you need is a little time, some patience, and you will soon be able to reap the benefits of a more stable financial situation.