Amidst rising inflation rates and population growth, it is tough to have a clear outlook on your future financial plans. With college loans and increasing demand for things you think you need, losing sight of the bigger picture is easy. The best way to stay calm and maximize your investments is to boost your savings. A key to increasing your monthly savings is consistency. Patience is essential as you learn to be mindful and train your mind to spend wisely. It may take some time and get used to, but after all, the benefits outweigh the costs by far. Here’s how you can do this:
1. Open up a savings and checking account in the bank
A checking account is a deposit account designed for ordinary, everyday transactions. You can use this to pay your everyday bills, for example, to pay your gas bill, all you need to do it write a check. You can keep drawing money from this account without any guilt. A savings account, on the other hand, is used for bigger investments. The bank pays you interest on the money you deposit, and loans out your money to other customers meanwhile. So, you basically receive an amount for simply leaving your money in the bank. Convenient, isn’t it?
2. Assess your recurring monthly expenses
Take time out to look at your monthly expenses and see if you can find ways to efficiently spend your money by keeping up with technology. For example, find a cell phone plan that suits your needs and budget. You should also invest in a car insurance plan. Since rates keep changing often, you may need to update yourself in order to avoid paying extra. Moreover, now that you can watch all your favorite shows and movies online, get rid of your cable TV. Check your subscriptions from time to time in order to avoid paying for things you no longer watch.
3. Throw out your credit card
When you can’t visually see the money you spend, it is easier to lose track of your expenses. Online spontaneous spending can also become a problem. Furthermore, if you are unable to repay your credit card bills on time, you will be charged extra money for late repayment. Why go through the added stress? Instead, get rid of your credit card and spend through your savings or checking account so that you are constantly aware of the amount you are spending. Make yourself accountable for every penny that you spend.
4. Keep track of sales
Before going on a shopping spree, develop the habit of knowing when your favorite stores are hosting a sale or search their discount codes. Most local stores have sales all year round. Keep in mind all the major holidays where every item is normally on discount. This includes Christmas, Black Friday, Mother’s Day, Easter, Fourth of July, St. Patrick’s Day and so on. This will help you be more mindful and spend money wisely. This method also always gives you something to look forward to!
5. Always make a list
It is easy to get sidetracked when you go shopping for grocery. Impulse buying and unplanned purchases are difficult to avoid at the moment, especially when you see a variety of your favorite goodies. After all, human instinct is to always stock up. A way to curb this habit is to sit down and make a detailed, well-thought-out list before you go grocery shopping. That way, you can always stick to the list you made and avoid spending extra on things that you don’t really need. Remember, mindfulness is key.