Tips for Growing Your Savings Account

Surely you’ve heard this advice from financial experts: have at least six months’ worth of living expenses in your savings account. If you’re already saving but simply can’t save more money to reach that goal, don’t fret. The fact that you have a savings account means you’re already on the right track.

To save more money, you’ll have to make some changes. The good thing is that these changes are easy to make, but you’ll have to take action to see your savings account grow.

Got extra money? Take it to the bank

Every once in a while, you might receive a pleasant surprise in the form of unexpected money. Whether it’s a bonus at work, tax refund or lottery winning, you should deposit the funds directly in your savings account. You may be tempted to spend it, but that won’t help your goal to save more money.

Eating out is out

If you regularly eat out for dinner, you’re likely aware that it takes a huge bite of out your wallet. Check your bank account or receipts to track the exact amount you spent on eating out the previous month. It may be a scary number, but it will help you realize you need to modify this part of your lifestyle. Though groceries might seem expensive too, it’s actually much cheaper to prepare meals at home. And to save more money, take advantage of coupons and discounted items – your savings account will thank you for it.

Fuel up your savings, not your tank

The cost of gas continues on an upward spiral, and there’s not much you can do to control the price. You can, however, control your fuel consumption. By cutting back on driving, you’ll pump fuel less frequently, which means you can save more money. Nowadays, many companies reimburse employees for a monthly public transit pass. If your company provides this benefit, take advantage of it – it’s a huge money saver. But needless to say, the money you save on gas should go into your savings account.

Redirect some of your paycheck – automatically

Most banks have a feature that lets you automatically redirect a portion of your paycheck into your savings account. You determine the amount of money that’s transferred – and it doesn’t have to be a large sum of money. Perhaps you can start off by redirecting $20 from every paycheck, and slowly increase the amount to a point that you’re comfortable with. You’ll be surprised at how you can save more money by not touching it in the first place.

To save more money and help your savings account grow, you don’t necessarily have to get another job. It merely requires you taking a good look at your current spending habits and making some changes to make better use of your hard-earned money. Before you know it, you’ll have that nice cushion in your savings account that the financial experts recommend.

Tell us your tips for saving money!