Fast Money: Tips to Save Money Fast

With the economy facing big problems here and around the world this year now is the time to shed debts and start some savings goals to buy major items debt free using high interest savings accounts. However, the reality is that it is never enough to simply want to save more money. That won’t quite cut it. Saving money requires a disciplined, well-organised approach.

Below are a few savings tips:

Establish specific goals for saving money
Clear savings goals keep you focused on your savings program. It gives added motivation, because you know you’re saving money for something you really want. The value of the goal also guides you on the amount that should be set aside each month. The goals could be:

• Saving up for an emergency cash reserve equivalent to 3–6 months’ living expenses
* Saving for the deposit for your next home
* Boosting your pension funds
• Saving enough for a holiday in a particular destination

Set a specific time frame for achieving each goal. When you have figured out your goals and the dates you want to reach your goals you should divide the goal amount by the number of weeks or months between now and your goal date. The result is the amount you need to save from each pay cheque.

Make saving money pay
The serious saver takes the effort to look for a savings account that pays them more interest for saving money. The interest rates offered by standard transaction accounts won’t help you reach your savings goals. A savings comparison website is the easiest way to compare interest rates and terms side by side before you apply.

If you had $5,000 sitting in your everyday bank account for a year and didn’t touch it then at the end of the 12 months you’d still have around $5,000. If you had the same $5,000 sitting in a high interest savings account for a year, you’d likely have more than $5,400 at the end of 12 months. High interest savings accounts attract around 7–8 per cent, which means you get paid for saving money.

Make saving money automatic
A common practice is to not have any set savings goals but to simply save anything left over at the end of each month. This reliance on self-discipline and the amount left over is good, but not good enough. To increase your chances for success in achieving your target, remove self-discipline from the picture and make saving automatic.

One of the simplest methods is to have part of your salary directly deposited by your employer into your. Once this is arranged, you have nothing more to think about. However, you may have to provide information about your high interest savings account. If you don’t want to do that, you can link the high interest savings account to your normal bank account.

Find ways to boost income
Increasing monthly income is a great way to help achieve big goals, but it is often neglected. By boosting income, you can save larger sums more quickly. There are ways to reach your goals faster such as working multiple jobs, putting your handup for overtime or doing odd jobs for neighbours. Sell some stuff you don’t need, or find ways to generate income from your hobbies.

Summing up, learn to be patient through all these. To start with it may seem slow but as your savings accumulate it will speed up. You’ll find new ways to cut your expenses or to boost income. You may even get unexpected support or extra bonuses. Stay focused on your big goals and you’re likely to succeed.

Article by R Greenwood of Compare Your Bank which allows consumers to compare banks online.