How to Increase Your Savings

“Save a little money each month and at the end of the year you’ll be surprised at how little you have.” ~ Ernest Haskins

This quote can hit a bit of a sore spot for many people. It can be tough to scrape together a little money to save each month, especially in the recent economy. And if you have debt, well then it can seem like facing a giant to try and get some money moved into savings. But that’s exactly why it is SO important to have a budget and track all of your expenses. If you have these 2 things you can see exactly where you are spending money and where you can maybe make some changes so you can get more into your savings (and investment!) accounts.

Do you need that $5 Starbucks treat every day? Suppose you go in 5 times a week over the course of a year. That would be about $1300. Even if you cut down to 2 days a week, you would spend $520 and could put the other $780 into savings. The same can be said for minimizing other costs. Re-evaluate your insurance policies to see where you can make changes (but be sure you keep adequate coverage!). Try calling your cable or phone company to see what current promotions they are running that they can apply to you. Our cable/internet company tends to raise our bill every year after the current promotion has expired, but it has been worth it to call and ask them to put a new one on. It may take a couple of calls until you get the right customer support person, but you could cut your bill by 30% and put the difference into your savings account.

It is true that every penny adds up. And yes, you can argue that saving something is better than saving nothing. But like the quote says, if you save a little, you’ll end up with a little. If you can find ways to save more each month, you’ll end up with more at the end of the year. And you will be closer to reaching your financial goals – i.e. paying for the kids’ college, retirement, having enough to pay cash for your next car, etc. Take a close look at your budget, adjusting it often, so you can maximize your savings.

Tags: financial goals, money, save, savings