3 Easy Steps To Boost Your Savings Fast
/Your savings account is your financial oxygen mask. Some money blogs call it a rainy-day fund or emergency savings, but at Money & Mimosas we believe words are power. If you call your savings account a “rainy-day fund” or an “emergency account”, you will create those scenarios in your life. Instead, we recommend calling it a savings account, freedom fund, sunny-day fund, or anything that evokes the feeling of peace and prosperity. This is one simple way to shift from a scarcity to an abundant mindset. This does not mean that challenging situations, such as a lay-off or losing a client, won’t happen. But your abundant mindset will make the situation less stressful.
Covid-19 has been a wakeup call for a lot of people. Many people have lost their jobs or seen their business take a deep dive. It’s times like these when your savings account comes in handy, helping to keep you afloat while your income takes a hit.
If your savings account could use some work, take a look at the following tips to boost your freedom fund to cover life’s unplanned emergencies.
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1. Get a side hustle
If your current income doesn’t stretch far enough to help you build your savings, then it could be time to take on a side hustle. Starting a side hustle can be easy, especially if you’ve got some free time on your hands. Side hustles are great for helping you reach all kinds of financial goals, and could be just what you need to grow your emergency savings.
Nobody can predict the future, which is why it’s important to protect yourself against different situations. By building up some savings, you can at least cover yourself financially, giving you peace of mind that you can cope if your job is threatened or you need to take some time off. Start building up your freedom fund so that you can stop worrying about money and feel confident about your financial future.
2. Reduce your spending
One way to maximize your savings is to reduce your spending. You might not realize it, but there could be some expenses that are unnecessary or are leading you to pay more than you should.
Scrutinize your transactions and make some tough decisions about your spending. You could find there are other ways to save money on your monthly expenses if you’re willing to make some changes. If you can make cuts, do it and put the difference into your savings.
3. Keep separate savings accounts
Separating your savings can help make things more manageable. This can help you to cover short-term emergencies, ‘fun’ savings for pleasurable activities, as well as savings to use for long-term planning such as wedding expenses. Try to allocate different amounts where you can, and if you get bonuses or a pay rise, don’t forget to include this in the mix as well.
