If you want to be able to increase the amount of money that you have saved up, then there are different things that you could try. You will need to make sure that whatever you try, that you concentrate on making sure that any extra money you have is directed towards your savings account though – rather than being spent!
Put Savings in Higher Interest Account
The first step is to make sure that the savings are earning as much interest as possible. If you put them in an account that pays very little interest then they will hardly grow. However, if you put them in an account which earns more interest then this will help them to grow. If you have a small amount of savings and rates are low, then you may not think that it is worth it. However, each small thing that you try will add up and as your savings grow, it will make more and more difference. You will find that if you want instant access to your money, then you will not be able to get such a high interest rate. So, if you tie it up in a bond or a notice account then you will get more. It is a good idea to think about whether you will be able to do this or whether you think that you will need access to the money right away. You may be happy to tie some up and keep some instant access. Compare the different rates as you are deciding and it should help you to make the right decision.
Transfer Money When you First get Paid
Many people will save by putting any money that they have left at the end of a month into a savings account. This means that they will only be able to save, if they have not spent it all. Often, we perhaps do spend it, because if we want something and know that we have the money available for it, we will buy it. Therefore, it can be better to save the money just after you get paid and then you will be forced to be more frugal during the month. Therefore, setting up an automatic transfer can be really helpful. You can still save anything that is left at the end of the month, but it is much more likely that you will save much more money by doing it this way.
Try to get More Money to Save
You may also need to see whether you can get more money to save. There are lots of different things that you can try in order to do this.
- You could sell things that you own and no longer need and use the money that you raise to put into your savings account. We often have a lot of items that we no longer use and that are just cluttering our home and so these items could be the sorts of things that we could sell. Obviously, this will not provide an income but you could raise a lump sum of money.
- If you have spare space in your home, then you could consider renting it out. If you have a spare room you could rent it out o a lodger or provide a bed and breakfast service. If you have spare attic space or garage space you could rent it out to people as storage. You can even rent out your driveway. You will need to own your home to be able to do this and you will also need to check with your insurer to make sure that they are happy with you doing this. They may require you to pay higher insurance, but it could still be worth it.
- You could try to reduce what you are spending. You can do this by comparing prices and switching suppliers, insurers and retailers so that you pay less for things. You could also cut down the amount of things that you are buying so that you spend less as well. It is worth thinking about whether you really need everything that you are buying as well as whether you are paying too much for them.
- You could try to work more hours in your job to get more money to save. You might be able to be able to do some overtime in the work that you are doing. You could also take on a second job, freelance work or other odd jobs so that you can get more money that way.