Things come up. Life happens. We really do need an emergency cash savings account built up when it comes to our financial lives. I’ve come to realize that having that available cash in a savings account just gives me peace of mind. And I hope to explain to you too why and how you can turbocharge your savings.
1.) Open a High Yield Savings Account
As I mentioned above, you definitely need to open a high yield savings account! This is where you should keep the money you might possibly need for an emergency, vacation, big expense, etc. This account should be seperate from your checking account with the banking institution you need. FYI….I just looked at the interest I earned in my savings account the other day with Barclays YTD and it was right around $110. Now, it all depends on how much money you have in the account, but if I were to save that with a traditional bank I would have earned pennies on the dollar.
2.) Set Up a Plan to Pay Down Credit Card Debt
Around 42% of households carry some sort of credit card debt. That’s almost 50% of the population. I get it, I admit I’ve carried over personal credit card balances into the next month a few times in my life. I try to pay off my cards in full every month, but life happens and things come up. It can happen, it’s not the end of the world. Figuring out how much credit card debt you have is obviously key, but setting up a plan and goal for yourself is where you’ll see things change!
3.) Live Within Your Means
You know what you can afford, and what you can’t. As we know, many people over extend themselves and rack a ton of personal debt. I’m not writing this to tell you what to spend money on. You do you, and spend money on what you want to spend money on. But, always assess where you’re at, and ask yourself is this something that I can afford, and do I really need it? Living within your means will help you increase your savings rate significantly.
4.) Part Time Job/Side Hustle
There’s only so much money we all can save each month right? Majority of people in this world are working for a company and get the same pay check every two weeks, etc. Yes, people get bonuses, raises, and much more. We all can only save so much each month. But, increasing your income? The sky is the limit. I think we live in a world today where the gig economy, side hustles, and other jobs on weekends is more dominant than ever and will definitely help with achieving your savings goals.
5.) Automate
Automate everything. What works for me is putting all the money I want saved and invested on the same day every month. This system works well with expenses too. Try and put everything on the same day, it makes it much easier! When you automate it you can forget about it. The only thing you really have to pay attention too is how much money you have in your checking account with your bank.