Helpful Ways to Create More Money in Your Savings
Introduction and the obvious
If you're like me and many others I've met, you may struggle with the idea of how to build a savings. Creating a savings can be tough if you make a less than desired wage and/or your bills have you nearly in over your head. However, even in these tough circumstances it is still possible to at least start your savings even if it is only a little at a time. As for my obvious point if you haven't already, it is time you open a savings account. Preferably one that accrues interest ;). If you find yourself to be one of those who don't trust banks you could always use a trusty a safe, although you won't be able to collect interest on all those dollars :(.
The Round Up Method
One of my favorite methods for putting money into my savings is what I call the round up method. How this works is every time you make a purchase no matter how big or small, round up to the nearest increment of 5 and subtract the cost of your purchase, then put the rest in your savings. For example, say I purchase something that costs $6.54. I would take the remaining $3.46 (savings amount) that is the difference between my purchase and the nearest increment of 5 which is $10 and put that in my savings account. I do this after every purchase simply by logging into my bank afterwards and transferring it to my savings. However, you could also keep a note in your phone of the amounts you are putting in your savings, add them up and transfer the total at the end of the day. The same could be done if you're spending cash. Simply hold on to the savings amounts separately then deposit them to your savings account at your earliest convenience. There is also another slower method to this, which may be ideal if you can't afford to put that much in your savings each day. Simply log in to your bank account at the end of the day or check your wallet, then take everything over your nearest round to 0 and set that aside for your savings; e.g. You have $127.67 at the end of the day, subtract the $7.67 to leave you with $120.00 even and put the $7.67 in your savings. I highly recommend starting this plan right away as these numbers can add up very quickly.
Don't Spend The Fiver
This is a method that works pretty well if you are a cash spender and is really quite simple. As the title implies, do not spend your $5 dollar bills. Spend any other denomination of bill, but always stash away your fives and put them in your savings. This is a bill you will see fairly frequently, but not as often as say your $1's or your $20's. A close relative of mine wanted to buy a new truck and decided to never spend his $5 dollar bills. In a relatively short time frame he had enough in $5's alone to pay for the down payment on his new truck.
Round Your Bills
Another simple method of adding to your savings is by rounding your bills. Simply put for each bill you have, round that bill to the nearest $50 increment and put the difference in your savings. For example, if your electric bill is $186.72 round to the nearest $50 in this case $200 dollars, subtract your bill amount of 186.72, then put the difference of $13.28 into your savings. Do this for each of your bills and you will begin to accrue a very healthy monthly savings.
Round Your Paycheck
Much like the latter method, this too is a simple rounding method for quickly growing your savings. For this method, look at your weekly paycheck. Round your check down to the nearest $50 increment and put the extra in your savings. I.e. If your weekly net paycheck is $626.28, subtract the $26.28 to give you an even $600 and put the $26.28 in your savings each week. As you'll be able to see, after four short weeks you'll already have over $100 in your savings account.
If the latter paycheck savings doesn't suit you, maybe percentages will. I always skim a little off the top every time I get paid to add to my savings. If you are not to fond of the rounding method for each paycheck or it is to much for you to save, try taking 1-3% off the top instead. Though it is a small amount, small amounts add up over time and won't be missed. Just think, if your weekly take home is roughly $400 are you really going to miss that $12 each week that is 3%?
If you like the percentages game try this one on for size. Every now and again we may run into some unexpected cash. Be it from someone buying a pizza and letting you keep the change, or maybe you find $5 on the side of the road. Perhaps you stumble across a $20 winning scratch off ticket. Whatever the case may be, I recommend at least taking 50% or even 100% of all unexpected cash and throwing that in your savings too. That unexpected cash was never in your budget, so it most certainly won't be missed accruing interest in your savings account instead of being blown on something frivolous.
Good Ole Fashioned Piggy Bank
Here is one you may already be doing and if you aren't you should be. To me nothing beats a good ole fashioned piggy bank. This is a tip that will also assist in other savings methods I have listed by default. NEVER spend your loose change, don't even use it to round your purchase off to the nearest dollar for convenience. That's right, take any loose change you accrue and put it in that piggy bank you have collecting dust in the closet from when you were a kid. Then, crack that sucker open once a month to a seasons length and dump that change off at your bank into your savings account. Honestly, you'd be surprised at how much change you collect over the course of a month or two, and once again certainly all that loose change will not be missed so it is better off collecting interest in your savings.
As a side note, don't even think about taking that change to a Coinstar for you to get robbed.
Last but not least, pay attention to any radical changes in your spending habits that is saving you money. As an example, say you give up smoking. In my home state of Michigan a pack of cigarettes can cost you anywhere between $6 and $8 per day if you are a pack a day smoker. Imagine if you quit smoking and you took that $6 per day and put that in your savings instead. You'd wind up with $180 dollars in your savings by the end of a month alone. This radical change savings method could be applied to nearly any life style change you make, and could make you feel even better for it. Anything from a diet change and your savings in grocery costs, to putting down the bottle every once in a while. As long as you take the money you would've spent and throw it in your savings not only will your wallet feel better, but so will your inspiration to continue on your path to positive lifestyle changes.
Hopefully I have given you helpful ways to create a savings or more ways to add to yours if you've already been doing so. If you also have your own creative ways of adding to your savings add them to the comments section below. I'm sure your peers will be truly grateful. If you are looking for ways to grow your savings or what to do with those savings beyond your own personal goals, might I suggest investing. I recommend only investing half of your personal savings and potentially putting that into a stock portfolio or 401k. What ever you wish to do is up to you, but taking half of your savings at your own time and dumping it into any for sure investment is always a good idea. I would like to thank you all for reading, and go ahead and take the poll below to see how you stack up to your peers as it comes to your savings.