If you want to see your savings account balance increase in the new year, there are four crucial steps you can do to get there.
Whether you want to buy a home, tick something off your holiday bucket-list or go for breast enlargement we all have reasons to start saving. Or perhaps you just want to cover all of your bases in case of an emergency and put some money aside for a rainy day? Whatever your motivation, there are a few key ways to hit that savings goal, guaranteed. Keep reading to learn more.
#1 – Budget wisely
If you make a budget for 2022, you might find it easier to meet your savings goals. It is easier to keep track of what you are spending when you create a budget and keep to it. Budgeting also helps you understand whether you are overspending in a certain category.
There are a number of budgeting applications available to give you a better understanding of your finances, however a spreadsheet works too.
#2 – Look at side gigs to boost your income
It goes without saying that reducing your costs is essential to increasing your savings. As simple as it sounds however, it can actually be quite tricky. Let’s face it, it can be difficult to deny yourself purchases and experiences you are used to such as dinners out and entertainment once you’re accustomed to enjoying those things. And, if you are already living frugally, there may not be many expenses to cut.
Instead of cutting costs to increase your savings, consider adding a job on the side. Depending on your abilities, schedule, and savings goals, there are endless options available. Consider how much money you want to make and how many hours you have available each week to help you narrow down your options.
#3 – Pay off your credit cards
Having a balance on a credit card means that you are liable to pay interest. If you focus on paying off the debt on the credit card you will avoid accruing interest. Simple.
To pay off your debt, you may need to stick to a budget and start working on the side. However, if you have freed up enough cash, it’s time to pay off your credit cards in order of highest to lowest interest rate. Alternatively, you may want to look into a balance transfer to consolidate your debt.
#4 – Look at refinancing your house
For homeowners with a decent credit score, it may be possible to save more money each month by refinancing your mortgage. Refinancing will generally give you a better interest rate on your loan, therefore it’s your ticket to a cheaper monthly mortgage payment.
Unfortunately, if your credit score is low you may not be able to obtain a better interest rate, so in that case it’s time to focus on alternative ways to increase your savings, like those mentioned above, rather than refinancing.