Boosting your savings made easy

Do not dwell on mistakes from the past. Do something today to boost your savings.

12:33 17 December 2014

It baffles financial experts why most people are unable and most precisely, reluctant to put aside more money as savings. After all, it is an essential practice to attaining financial freedom. The practice of saving accords you a much-needed breathing space from your payments towards rent and utilities. In case of sudden unemployment or other emergencies, your saving pot can actually see you out of the adversity. 

 

The following are easy tips to help you beef up your savings account and realise financial independence. 

 

Pay Down Your Credit Card Debt; Save Simultaneously

 

Some people have a rather fiscally unhealthy habit of increasing their credit card debt without considering options to put some money into an emergency savings fund. Holding credit balances for long periods only cripples your financial independence and it makes it hard for you to save. It is a good practice to pay off your debt as a saving tactic. 

 

Moreover, it is even better to pay down your card debt and build your savings concurrently. You can start by making minimum payments on all your credit cards and building your savings up to a sizeable amount at the same time. Later, focus your efforts to paying off the credit cards, starting with the one that attracts the highest interest.

 

Automatise your savings

 

Many times individuals wait until they have made all their monthly financial obligations and then try to save whatever is left, but there is usually hardly anything that remains to be saved. You can however arrange with your bank to make automatic deductions of a percentage of your paycheck for the same to be deposited to your savings account. 

 

Some financial planners endorse an automatic saving of up to 10% of your earnings, which is great way to make sure that you will have enough in case of unexpected incidents or accidents.