Just like starting a new career or learning a new skill, building wealth involves identifying your objectives. You need to know what your short term and long term goals are. Why do you need to save money? What are you saving for? Do you need money for an important purchase? Or are you saving for long term needs, such as investing in a house or property? Whatever your objective, setting financial goals is important because it can keep you focused on saving. However, this is always easier said than done. Reaching your financial goals involves careful planning, budgeting and prioritizing your savings. If you want to get there fast, here are some money hacks you might find handy.
Open a high-interest savings account
Keeping your money in a savings account isn’t only a good way to keep your funds secure, it can also help you grow your savings through interest. If you don’t know how much interest you’re earning on your savings account, now is the best time to find out. If your current financial institution doesn’t offer lucrative growth opportunities with regard to savings, consider opening a higher interest savings account at another bank or a credit union. You might not think interest rates matter but they can significantly impact the growth of your savings.
Use cash for your daily expenses
Do you usually use credit cards for everyday purchases? If this is your custom, it’s advised to change this habit now. Leave your credit cards at home when you leave for work. Keep only cash in your wallet so you only spend within what your budget will allow. This will also help you become more mindful of how much you’re spending. When using credit cards, you’ll be more inclined to spend money beyond your means, whereas sticking to just using cash can help keep you from overspending.
Cut down on utility costs
One of the important money hacks people tend to overlook is making adjustments to their utility bills. Oftentimes, we don’t realize there are ways to cut utility costs.With some research, you’ll discover there are several strategies you can use to reduce your monthly utility bill costs.
For example, if you work long hours or spend your free time doing other activities, and therefore don’t spend much time watching television, you may want to consider downgrading your cable TV plan. You can also make a more more conscious effort to conserve water and electricity. Think about installing a shower head or faucets that don’t use as much water. You can also save on energy and heating costs by sealing the tiny spaces and cracks around doors and windows and turn off lights and appliances that are not in use.
Create a budget plan and stick to it
Creating a realistic budget is a crucial step you should consider if you want to reach your financial goals fast. Not only is it important to know where your money is going, but you also have to find ways to cut down on your expenses in order to accrue more savings. Start by creating a spreadsheet on paper or your computer. Record how much money you spend on a daily, weekly and monthly basis. See if there are any items on the list on which you spend too much and if you can cut down on any of these costs.
For example, maybe you’ve been splurging on luxurious weekend dinner outings or shopping sprees. Consider making adjustments with regard to how much you spend on these things, or better yet, look for a cheaper yet satisfying alternatives. Also, take a look the small things (like your morning coffee routine.) Instead of spending a couple of bucks on that cup of joe, maybe you can enjoy a fresh brew at home before leaving for work and save a few extra dollars.
Look for ways to earn money on the side
Doing a “side hustle” is another excellent way to pool more funds for savings. If you have talents or skills you can leverage, don’t hesitate to use them to earn some extra income. Do you have skills in photography or music? Look for opportunities to cover small events or become a music instructor in your extra time. There are many ways to earn extra cash. All you have to do is use your time and resources wisely.
Achieving financial goals begins with developing the right habits. Use this guide to help you build wealth in no time! And if you’re ready to grow your savings by opening a savings account, Calcite Credit Union is the perfect place to start. Please feel free to give us a call for more information.