Boost­ing your sav­ings in the New Year

The Punch - - PERSONAL BANKING - Source:

Although there are no magic tricks to make you an in­stant mil­lion­aire, there are a few ways you can learn how to build your money in no time.

No mat­ter how much debt you have or how lit­tle in­come you make, any­one can fig­ure out how to make money grow in sav­ings ac­count with the right fi­nan­cial plan. If build­ing sav­ings is your goal, then these nine easy steps will help you get there.

• How to in­crease your sav­ings with a bud­get

Mak­ing a bud­get is not dif­fi­cult, but it can seem daunt­ing if your per­sonal fi­nances need a big over­haul and you are des­per­ately try­ing to build wealth.

A help­ful bud­get app may get you on the right path, but the most im­por­tant thing to re­mem­ber is to make your bud­get re­al­is­tic.

When you are try­ing to de­cide what to cut from your cur­rent spend­ing, look for things you know you can live com­fort­ably with­out. That means get­ting rid of your magazine sub­scrip­tions, ca­ble, home phone, trips to the nail sa­lon, or any­thing else that is more of a want than a need.

Af­ter you have made those cuts, di­vide your in­come into three piles: one to pay your bills and ba­sic ne­ces­si­ties with; one for your sav­ings ac­count; and the left over ex­tra cash just for fun.

too strict of a bud­get will drive you crazy, and the best way to main­tain good fi­nan­cial habits is by re­ward­ing your­self, even if it is just with a fancy latte or new out­fit from time to time.

• How to build money by set­ting goals

Even if you make the most amaz­ing fi­nan­cial plan in the world, with­out set­ting a spe­cific sav­ing goal in mind, the chances of you ac­tu­ally stick­ing to your bud­get are pretty slim. Do you want to save up to buy a home? Pay down your loan or credit card debt? Build re­tire­ment sav­ings? Cre­ate an emer­gency fund? What­ever your goals are, as­sign price tags and dead­lines to give your bud­get pur­pose and to keep you mo­ti­vated while sav­ing money.

• How to build sav­ings quickly: Set it and for­get it the great thing about online bank­ing is that for al­most ev­ery­thing, you can set it and for­get it. If you want to al­lo­cate 10 per cent of your in­come for re­tire­ment sav­ings and five per cent for your down pay­ment fund, set up trans­fers for ev­ery pay cheque so that money goes ex­actly where it needs to au­to­mat­i­cally. This will help build sav­ings by re­in­forc­ing the habit of pay­ing your­self first, and will save your time and ef­fort as well.

• How to max­imise sav­ings by avoid­ing credit pur­chases

Many peo­ple are wary of us­ing credit cards since this can lead to hefty debts if not used re­spon­si­bly. But not only are they gen­er­ally more se­cure to use than debit cards, they can also make you money that you can put di­rectly into sav­ings.

Depend­ing on the cash back credit card you get, for ev­ery Maura you spend, you will get money back ei­ther di­rectly onto your card or in cheque form. Now that is just easy money! As an added bonus, us­ing credit cards re­spon­si­bly will help raise your credit score, lower your in­ter­est rates, and save you money down the road.

• How to build your money by know­ing your worth Although some­times you might just be thank­ful to have a job, it is im­por­tant to know your worth and be paid ac­cord­ingly.

Do some re­search to see if you are be­ing paid the me­dian salary for your cur­rent role, and if not, it might be time to ask for a raise or look for a new job that pays bet­ter. re­mem­ber, the more money you make, the more money you can put into a sav­ings ac­count.

• How to make money grow in a sav­ings ac­count by get­ting a side gig

Many peo­ple these days have sec­ond jobs or side hus­tles to sup­ple­ment their full-time in­come, and it is a great way to ac­cel­er­ate your sav­ings, too.

Are you nat­u­ral at crafts? Maybe you should con­sider sell­ing some of your crafts. Do you en­joy con­certs and sport­ing events but don’t want to pay for them? Why not find a part-time job at night work­ing at the sta­dium to max­imise sav­ings?

• How to max­imise sav­ings by in­vest­ing

Putting ex­tra money into sav­ings is im­por­tant. But to make sure that money grows or even just main­tains its worth over the years with in­fla­tion, you need to start in­vest­ing with a good in­vest­ment strat­egy. the more you save, you need to make sure that big chunk of change is put to good use, and that might mean putting it into in­vest­ments, bonds, stocks, mu­tual funds, or other in­vest­ments in the money mar­ket.

• How to build money your money by mak­ing sac­ri­fices

Above any­thing else, the old­est trick in the book to build up your sav­ings ac­count is to make some sac­ri­fices with prod­ucts and ser­vices. that might mean cut­ting some crea­ture com­forts from your life for a while. It might mean cut­ting back on eat­ing out or par­tic­i­pat­ing in so­cial ac­tiv­i­ties.

No mat­ter what, at the end of the day, all of those sac­ri­fices will be more than worth it. Not only will you be a heck of a lot richer for do­ing it, but you will never have to waste an­other night los­ing sleep wor­ry­ing about money.

You don’t need a fi­nan­cial ad­viser to learn how to build your money. If you are re­ally se­ri­ous about get­ting on the right track fi­nan­cially and build­ing wealth, these nine tips can help teach you how to make money grow in a sav­ings ac­count.

re­gard­less of your age or cur­rent fi­nan­cial sit­u­a­tion, now is the right time to start curb­ing those bad spend­ing habits and plan­ning for a richer and more ful­filled fu­ture.

Photo: Stan­bic IBTC Bank

•L-R: Sec­re­tary of Ado-odo/ota LGEA, Ogun State, Oluse­gun Ade­jare; rep­re­sen­ta­tive of the Oni­joko of Ijoko Ota, Chief Ogun­wale Oye­labi; Head Teacher, Com­mu­nity Pri­mary School, Ijoko Ti­tun, Mrs S Ba­lo­gun; Head, Pro­cure­ment, Stan­bic IBTC Bank, Ay­oolu Oni; and Head, As­set and Leas­ing, Stan­bic IBTC Bank, Gbenga Adeniji, dur­ing the in­au­gu­ra­tion of mod­ern class­rooms built by the Pro­cure­ment and Group Real Es­tate Ser­vices Depart­ment of Stan­bic IBTC Bank at Ijoko Ti­tun, Ogun State… on Thurs­day.

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