August 9, 2021
5 Innovative Approaches to Increase Your Savings in Today’s Economy
No matter what your current income level is, building a solid set of saving habits can help you keep more of the money you make. Even if you’ve struggled with financial discipline in the past, the truth is that modern technology has made it easier than ever to develop a strong, sustainable plan that puts you on the road to financial independence. To help you get ahead and stay ahead, here are our top five tips for building your savings in the modern world.
1. Take a Look at the Latest Personal Finance Apps
This tip comes first because it makes every other strategy on our list that much easier to execute. With the latest personal finance apps, you can do everything from track your spending habits to set a yearly budget and develop long-term retirement plans. Popular apps like Qapital and Digit even let you automatically set aside a certain portion of your income each month for personal savings.
In addition, several of the largest banks offer these types of apps for free. While the specific apps that you choose are up to you, it’s important to get at least one that gives you automated alerts when you have upcoming bills. This way, you can avoid those pesky late fees that can drain your savings in a hurry.
2. Get Disciplined About Tracking Your Monthly Expenses
It can be scary to sit down and take a serious look at your monthly expenses, but tracking every dollar you spend is one of the fastest ways to find new opportunities to save. Once you’re aware of how much going out to eat, for example, is actually costing you, it will become easier to stay disciplined about sticking to a budget.
If you’re familiar with the fundamentals of bookkeeping, then you can even use an inexpensive app like QuickBooks Online to organize all of your expenses by type and vendor. If the idea of doing your own books sounds a little overwhelming to you, then an app like Mint can help you keep yourself on track.
3. Take Advantage of Customer Loyalty Programs and Cashback Credit Cards
As long as you’re responsible with your spending, using a cashback credit card can actually help you increase your savings. Saving 2% here and there with rewards points might not sound like a lot, but the results can add up quickly. In addition, lots of grocery stores and gas stations have loyalty programs that can help you save on goods and services that you’re already buying each month.
4. Join the Gig Economy
You probably have at least one useful skill that people would pay you for, and there are tons of resources available to help you start a freelance business or a side hustle. Plenty of companies need people to do something as simple as transcribe interviews or test new software, and these simple side jobs can be a great way to put some extra money in your pocket while working from home. Even the larger gig platforms, such as Uber and Doordash, let you set your own hours and work around your full-time job.
5. Consider a High-Interest Savings Account
Getting a high-interest savings account is one of the easiest ways to compound your savings over time. If there’s one thing that the world’s richest people all agree on, it’s that the fastest route to financial independence is having your money work for you. Making regular contributions to a savings account also changes the way you think about your income. In short, you start to realize that every dollar you spend is one dollar less that you’ll be able to receive interest on.
The Bottom Line
If you’re serious about boosting your savings, then the good news is that you have plenty of options to do so. With some discipline and data, you can be well on your way to building productive financial habits that will serve you for a lifetime.