Growing your savings as you prosper and get rises in your income is a must now a days. This is because, with every passing year, the cost of living rises causing a rise to your expenses.
Suppose you started saving when you first started earning . Obviously taking in note to the pay check a newbie will earn, the amount of saving will be less but with passing years ,as your pay scale and expenses rise, the amount which you were saving before would not be enough to save then . What you should /can do is putting into practice these simple tips to increase your saving . which will in turn help you to pursue bigger goals in life as you age .
- 1 .Spend less than you earn – There are many people who do not take in note of their earning and spend huge amounts(may be the whole salary for the month) meaninglessly without taking in consideration of what would happen in future if there is any financial emergency.
- Automate the bills – Automating the bills instead of paying them by yourself each month immediately after you get your paycheck amount in the account will help because you will not see the money sitting in your account and would less likely think of spending it.
- Increase saving with raise in paycheck – While kick starting your career, you may not be able to save much but with progress in career, try to save more than what you did before and do not stop after a single increase keep adding as your paycheck keeps increasing.
- Save first at the beginning of the month – Do not wait until month end to save what is left with you . As you pay your bills , set a certain percentage of your salary as your saving amount each month and put it in your savings account .
- 5.Expand your earning – With the principal jobs you are doing, add some subordinate small jobs to add to your earning like tutoring, babysitting, freelance designing etc. These would add to your income helping you to add to your savings.
Following these simple tips and doing them can help you to achieve bigger goals and stay prepared for any unknown emergencies.