7 tips to increase your savings
(Photo credit: Flickr – Brennan Clark)
Do you have a project you want to finance? Have you started putting money aside, but find that things aren’t moving as fast as you’d like? No problem ! Here are some tips to adopt better financial habits and increase your savings. This will help you reach your financial goals faster.
What is saving capacity?
When we talk about savings capacity, we are simply talking about the difference between all your income and all your expenses.
So, it’s money you can save from your income to put aside to create a safety cushion or to invest to achieve your goals (go on vacations, buy a house, fund your kids). study, retirement, etc.).
Create a budget so you know where to save more
One of the first steps to increasing your savings is to have a thorough understanding of your income, but especially how you spend the money you earn.
Therefore, after analyzing your financial situation, you should start by making a budget. You will be able to better understand which are the most important poles of expenses and ways to reduce your expenses.
Increase your income
While reducing the overall amount you spend each month, you can aim to earn more.
You can start by asking for a raise to increase your income. For example, if you have a business idea or a special gift, it is also possible to look for another job that pays better or to run a parallel activity as a micro-entrepreneur.
Plan your payments to save money
You should consider automatic transfers to make the savings process easier and to keep you from changing your mind about how much you want to set aside.
Consider opening a savings account dedicated to your savings. You can then automate your savings more easily by programming regular payments to be made without thinking about it. This is the best and hassle-free way to save/reserve.
Pay your bills on time to avoid extra charges
While it can happen to anyone at some point, not paying your bills on time can lead to extra payments that you may already be making.
These actually increase the amount of your expenses and especially reduce the amount of your savings. This situation can be avoided with better organization and planning!
For example, you can use automation to pay your bills on the same day every month directly from your main bank account. You can also authorize direct debits.
Also read: Prudent savings: should you invest in livret A or euro life insurance fund?
Minimize impulse purchases
When it comes to sticking to your budget to save the most, one of the biggest challenges is not giving in to impulse buys (especially when you regret it or it’s not really useful).
There are several ways to combat impulse buying. For example, you can avoid going to places you know have your favorite stores. After dinner, you should go shopping and stick to your shopping list.
Cancel unused subscriptions
It’s not uncommon to subscribe to magazines or online courses that we no longer use/no longer use but are still subscribed to.
You can save money by sorting through the subscriptions that you need to cancel and the ones that are no longer useful to you.
Save your energy consumption
For example, it is possible to increase your savings by taking the right steps to reduce your energy consumption, such as electricity or gas.
First of all, you need to know everything about how your electricity/gas contract works. You will then be able to find out if you can take advantage of peak hours and off-peak hours, for example. So, for example, you can choose to make your machines during off-peak hours.