Boost Your Savings to Hit Your Financial Goals
Savings for long-term goals while living your daily life is a challenge. It can be easy to think of ways to trim your budget, but when it comes time to live by that, day in and day out, you may find things more challenging. If you are ready to stop living paycheck to paycheck, and start working to reach some financial goals, there are adjustments you can make that will produce results. When you implement these changes, deposit the money you save directly into your savings account. This way you can easily see how quickly your sacrifices add up.
Drop Unnecessary Services
Take a hard look at any subscription services you use. This can be anything from boxes that deliver skincare products or snacks, to streaming services like television shows or music. Think objectively about each one. Do you use those skincare products? Does subscribing to that service save you money by eliminating spontaneous purchases of full-size products? If so, then keep it. Too often, however, you keep it because you enjoy the surprise of opening the package. If you have a stack of unopened products, cancel, or at least pause the subscription. Now, look at your streaming media services. If a streaming television subscription helps you cut the cord with cable, it makes financial sense. If you have multiple subscriptions as well as cable, or even just one that you never use, it’s time to cancel.
Negotiate Interest Rates
If the debt is over multiple cards, start with the one that has the highest interest rate and chip away. If you are used to carrying debt on your credit cards, you may face a few rough months as you pay your expenses without using that credit card float, Once your credit cards are paid off, you can go back to using them for rewards or travel perks, but pay them off in full, every month.
Take a look at your student loans. Interest rates are probably lower now than when you took these loans out. Refinancing can save a significant amount of money, both monthly and over the life of the loan. Depending on your goal, you may wish to apply the money you save from refinancing to the principal of your loans to pay them off more quickly or stash it in your bank account.
Take Joy in Saving
Watching the money you save add up in your bank account may be all the incentive you need to keep going. It is important to adjust your mindset when you save money. Having a specific reason you are boosting the extra funds, whether it is to pay for a vacation or to build your retirement account, makes the smaller daily sacrifices easier to maintain. Making the effort to build in rewards that are affordable and enjoyable help prevent burnout. Enjoying occasional smaller treats prevents you from feeling like you need to treat yourself with budget-busting expenses.