Tips for Increasing and Preserving your Savings

Posted in Save Money on July 15, 2022

There are few things more reassuring than the knowledge that you have a decent amount of savings in your bank account. Even a small safety net can be extremely beneficial, particularly for those moments in life when you’re hit with unexpected expenses.
Unfortunately, while we would all love to get to a point where we can have not just an emergency savings pot, but a savings strategy for long-term purchases too, it’s often easier said than done. In today’s fast-moving world, it can feel as though you’re constantly spending, and leaving nothing in your pocket for the future.

Fortunately, there are a few ways to increase and preserve your savings, without changing too much about your current life.

1. Make Saving Automatic

With a little luck, you’ve already got a budget laid out that tells you how much money you have coming in each month, and how much cash you’re spending on things like necessary bills and other expenses. Figure out exactly how much you can put towards your savings each month. If you have a long-term savings pot and an emergency savings net, then you may need to split this money two ways.

Once you’ve got your number in mind, set up a separate savings or bank account where you can deposit your cash every month. You can set up standing orders with your bank account that will transfer the money on the same day you get paid, so you’re less likely to spend anything too fast.

2. Use an App

If you’ve been struggling with saving up until now, technology could be the perfect next step. There’s an app for everything these days, including apps that can tell you exactly how to improve your savings strategy. Apps for budgeting allow you to see where all of your money is really going each month, and some can even provide you with helpful tips on guidance on where you can spend less.

These apps often connect to your bank accounts, making it easier to track your spending in various areas. You can also find a handful of apps that make it easier to start investing with the left-over cash in your bank too.

3. Remind Yourself of Your Goals

If you have savings, then you probably have an idea of what you want to do with that money one day. Maybe you want to buy a new car or put a deposit down on a house. Keep a clear eye on the future whenever you’re making your decisions and ask yourself whether you’re making real progress to your goals with every purchase.

For instance, if you want to buy a new car and you decide to take out a loan so you can access the vehicle you want faster, this may drain your savings opportunities for a while, but it does take you closer to where you want to be. On the other hand, if you’re saving for a house and you keep buying video games instead of preserving your cash, you know you’re not making progress.

4. Give Yourself Pocket Money

In an ideal world, we’d all have absolutely no bills to worry about, and we’d spend our income on whatever we wanted. Unfortunately, the truth is that’s not an option for most people. When you get your wages each month, you’re going to have to dedicate a lot of that money to the things you need, like utility bills, rent or mortgage expenses, food, and additional extras like that. However, that doesn’t mean that you can’t have any money for yourself.

Based on what you know about your current needs and expenses, consider giving yourself a dose of pocket money to work with each week, or each month, depending on what works better for you. Stick to that amount when you’re paying for things you “want” instead of the things you need.

5. Cool Off

Finally, if you’re always keen to invest in the latest gadget or clothing item, it might be important to learn how to give yourself some time to make better decisions. Initiating a cooling off period in your life before you start spending money over a certain amount can save you a lot of regret in the long term. A good way to start is to make sure you always think about any purchase worth more than $20 for at least 24 hours.
Half of the time, you’ll decide that you never wanted to buy that item after all.