Five tips to increase your savings

We need to save money not because we want to buy bigger and better things, but because we want to have something that we can take out when difficulties arise. The money that we have to save is equivalent to three to six months of our salary according to financial gurus, and that is called emergency fund. For example, you are earning $3, 000 per month, then your savings should be at least $9, 000. That would cover for three months of your expenses in case worst scenario happens that you lost your job or other financial emergency.

To build your savings, here are the five tips:

1. Make it a habit to save monthly. The key to build your savings is consistency. Commit to your goal of boosting your savings by making it a habit to save money month by month.

2. Identify how much savings per month you would make. Based on your salary, expenses and how fast you want to achieve the amount of money you aim to save, determine how much money you can put in your savings each month. Once you have calculated the amount of money you want to put in your savings, make sure that you follow it through.

3. Automate your savings. There are banks that make automatic savings possible. You can set the date you want the transfer to happen and how much, then it will automatically deduct from your main account to your savings account.

4. Monitor your expenses. To increase your savings, keep track of your expenses by listing it down. At the end of the month, see your expenses and analyze it. Find out which expenses can be minimized so that you can add this money in increasing your savings.

5. Find avenues to generate additional income. If you want to save more money or speed up reaching the amount of money you want to save, then you may look for additional income. You can look for a part-time job, and the money you earn from that job can be added to your savings.

As you save money, it does not matter how fast or how long it takes you to reach your goal or how small or how big you are saving each month. What matters most is that you have started doing it and you are consistent with it!


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