Are you looking at ways to boost your savings?
Setting money aside is an important financial strategy that can help you manage your money better and put you on track to reach your short and long-term goals.
However, when it comes to making the most of the money you have, it’s not always easy to know where to begin. To help you boost your savings potential, here are some ideas you might want to try.
Why Save?
Focusing your efforts on saving is an indication that you have good money management skills. This is because you’re in a good place financially should you need emergency funds for an unexpected expense or for longer-term needs, such as when you retire.
The cost of living is still high, so budgeting in a way that allows you to save means you’re also prepared to cover extra expenses, such as school uniforms or Christmas.
Automating your money so that funds go into a separate savings account can be hugely beneficial. There are also other ways to maximise the savings opportunities available to you.
Choose High-interest Accounts
Choosing the best savings account is important. This is because it could boost your savings. While there are some mainstream accounts that offer the basics, research the ones that could offer you a good return on your investment in the form of interest.
ISAs, for instance, are a type of savings account that offer tax-free interest, making them a popular choice. There are several types to choose from, including Cash ISAs, which are suitable for low-risk savers, and Stocks & Shares ISAs, which allow for investment in the stock market.
You might want to look into fixed-term accounts too. Here, you lock in your money for a set period and they often offer higher interest rates as a reward.
Cut Unnecessary Expenses
Assess your income and outgoings. Is there anything you’re paying for that’s not essential? While it’s important to build in some spending for leisure, it’s worth looking carefully at some of your expenses to see if you can look for better deals or remove these things completely.
For instance, are there any subscription services that you don’t really use anymore? Or have you gotten into the habit of buying the more expensive version of things? Take the time to crunch the numbers and see where swaps and changes can be made so that you can save.
Invest To Grow Your Savings
There are few ways to invest your money. There are low-risk investment options, such as government bonds, which offer a fixed interest rate over a specified period, and high-interest savings accounts, which offer better interest rates in exchange for limitations on withdrawals.
Want to explore higher-risk strategies? Stock trading involves buying and selling shares in companies and you could see decent returns. But you need to do your research and understand the markets as there’s a chance you could lose your investment.
Mutual funds are also a higher-risk option. These gather money from several investors to buy a portfolio of stocks, bonds, or other securities. They offer professional management but come with fees.
It is crucial to understand the risks associated with these investments and to only invest money that you can afford to lose.
Join Loyalty Schemes
It’s important that you’re wary of store credit cards and other deals offered by retailers. However, if you’re a regular customer, you might be eligible for loyalty schemes that are available. Anything from the Boots Advantage Card to Morrisons More Card incorporate offers that could help you save in the long run. You just have to be savvy about how you use these schemes.
How are you planning to boost your savings?
