Want to save up your money faster? By trying some of the following solutions, you may be able to reach your savings goal sooner.
Choose the right account
Choosing a high interest savings account will help your money to grow. Basic savers may only earn you 0.5% interest at most, but there are other savings accounts out there that can earn you up to 3% interest.
Consider looking beyond brick-and-mortar banks – many online banks are able to offer better interest rates due to not having the same running costs. Be wary that certain high interest savers may have conditions to meet such as maintaining a minimum balance or contributing a minimum amount of money each month.
Save up with someone else
If you’re saving up for a joint goal such as a wedding, a house, new furniture or a holiday, it may make sense to save up with a partner. By combining your savings into one account, you may be able to accumulate more interest.
Having someone to save up money with can also serve as an extra motivation. You may feel more guilty not contributing your share each month and will be less tempted to dip into your savings for other expenses.
Make cutbacks to save more
Cutting back on your other expenses could allow you to save up more money each month. This could include eating less takeaway meals, drinking less alcohol, using your car less or treating yourself to less clothes.
Small cutbacks could make a big difference. Some of us can easily spend £50 on takeaway coffee per month or even £100 on alcohol. That’s an extra £150 saved towards your goal. The important thing to remember is that it’s only temporary.
Consider investing your savings
If you’ve already accumulated a fair amount of savings but still need more, consider whether it might be worth investing some of your savings. There could be high growth options out there that you can look into beyond savings accounts.
An investment advisor such as Robert J Bukowski will be able to tell you the best options depending on your financial goals. This could include looking into bonds, stocks or other forms of investment. Some of these forms of investment may come with greater risks, so you’ll have to weigh this up.
Throw extra earnings at your savings
If you earn some extra money one month, consider throwing this at your savings. Surprise earnings such as bonuses, winnings, birthday money and tax rebates are all worth contributing to your savings goal.
You may also be able to make more money each month by taking up side hustles. This could include selling clutter, making crafts for cash, answering paid surveys or lending skills to people for money. You could even work overtime for a temporary period, so that you can earn more to put towards your savings – just don’t burn yourself out in an attempt to reach your goal.