9 Tips For Maximizing Your Savings

Ah, savings. Some people are very, very good at building savings and some folks are very bad at it. No matter where you fall, there’s always something we can do to maximize our savings and have ample capital come retirement. Good money management practices are absolutely essential to getting a leg up on your savings. While many tips for saving money can get too specific to people of a certain lifestyle, we’ve composed a list that we think can apply to just about anyone.

9 Tips for Saving Money Right Now

1. Save your income from your tax return.

Sounds easy, right? Instead of treating your tax return income as extra spending money, stick it in savings. While you could have the immediate gratification of spending, aim to save. If you have to spend it on necessities, so be it. But plan to save!

1. Dedicate a regular amount to savings with every deposit.

This is simple, too! Whenever you make a deposit, make sure something ends up in savings. It could be $200 or $50 or $20 — as long as something goes into savings. Get in the good habit of consistently building that account up.

1. Automate your payments.

Bad about collecting late fees? Automate. Many services, from student loan payments to credit card bills, offer automated payments to ensure that you’re always on time. Don’t let your bills gather unnecessary interest.

1. Save before you spend.

We all have things we need to cover. If you’re living paycheck-to-paycheck, it can be hard to find room to save. Still, if your income allows for it, pay yourself before you pay the bills. Put something into savings. Then spend.

1. Simplify your home.

Even if you can afford it, it doesn’t mean you need it. Many of us have the income to have larger houses. But do we need it? You can downsize into a home equally as nice and save not only on mortgage, but on utilities. If you’ve scrimped and saved to make a big move, keep in mind if it’s a smart move for your long term savings.

1. Follow a strict budget.

Few people are gifted with the ability to budget well. Good budgeting can be learned, though. Force yourself to follow a budget.

1. ...And keep track of it.

Don’t keep your budget in your head. Write it down and record everything, no matter how insignificant. There are plenty of apps to help you do it, too. Shop around and see what interface works best for you. If technology isn’t your thing, there’s always good ol’ pen and paper.

1. Round up.

Pay a really weird amount, like $15.44? Take that 44 cents and round the amount up to the nearest dollar when recording your budget. Not only will it make calculations easier, but you can put those extra cents immediately into savings.

1. Build an investment portfolio.

Passive investment is a great way to build up your savings. Obviously, we deal in real estate investment, but that’s not the only market out there. Explore! Find out what investments work for you. You don’t necessary have to dedicate a lot. Starting off, even small amounts can have a big impact.

What’s the best advice you’ve been given about saving money? Share your wisdom in the comments.

image credit: 401kCalculator