Everyone wants to save more, and there are so many different ways to do it. Whether it’s cutting back on subscriptions or cooking more at home, it’s important to find ways to save that are sustainable for your lifestyle. If you’re looking for ways to ramp up your savings, here are three tips to help you take your savings to the next level.
1) Refinance debts for a lower interest rate
For many people, debt is a necessary part of life. Whether it’s a mortgage, student loan, or a credit card balance, paying off debt can be a challenge. One way to make debt more manageable is to refinance for a lower interest rate. For example, you can consolidate credit card debt or refinance student loans.
So, how does refinancing increase your savings? Refinancing debts may save you money in the long run by reducing the amount of interest you pay over the life of the loan. If you’re considering refinancing, always compare offers from multiple lenders to ensure you’re getting the best deal possible. Just remember that if you choose to refinance federal student loans with a private lender, you’ll lose access to federal benefits and protections, so visit studentaid.gov for more info. You’ll also want to consider the fees associated with refinancing—some loans, like mortgages, come with associated fees, while others, such as student loans, typically do not.
2) Set up automatic payments (and savings)
One of the best ways to stay on top of your finances is to automate your payments. By setting up automatic payments for your bills, you can ensure that you never miss a due date or get hit with late fees. You can also automate your savings, transferring a set amount of money from checking into savings each month. This can help you to build up your savings over time without having to think about it.
3) Give yourself a savings goal
If you’re having difficulty saving, it may be because you’re not working toward a specific goal. If your goal is nebulous—for example, if you’re slowly paying down debt or starting an emergency fund without a specific goal—it might be hard to find the motivation to save instead of spend. On the other hand, it can be motivating to write down your goal with a specific timeline and target amount, and then make a plan for how you will reach it.
Focusing on a goal is simple. Decide what your main financial goal is and what you want to save for—whether it’s a big purchase, paying down a debt, or just hitting a number in your bank account. After you decide how much you want to save, write it down, and then work out a specific plan for reaching that goal.
Reaching a savings goal is a great feeling, but it’s important to keep up the good work even after you’ve hit your target. After all, you never know when you might need to dip into that savings again. Plus, continuing to save can help you build up even more financial security for the future. If you’re looking to really take your savings to the next level, keep adding new financial goals and keep saving.