With the never-ending amount of bills, recurring expenses and unexpected purchases you experience on an ongoing basis, it is no wonder that savings ranks near the bottom of your financial importance checklist. Fortunately, there are a few effortless ways to save money that do not require getting a part-time job or making huge budgetary-related sacrifices.
Keep The Change
If you have a personal checking or savings account, one of the easiest ways to put your savings on autopilot is to round your purchases up to the nearest dollar in your check register or savings record. Direct deposits and miscellaneous check deposits would be rounded down, so that each transaction is essentially earning you a sum of money, and the balance in your account always shows as a whole number. At the end of the month or week, compare your actual balance to the higher balance in your register, and transfer the extra money to a separate savings account. You can give the account a fun name for added incentive.
Even if you do not have a bank account, you can still apply this principle to your cash purchases. You could designate a spare change bucket and only spend paper money. Or, you could make the choice to not spend a certain denomination of money. When you come across a bill in the specified denomination, you put it away in a safe, envelope or jar. At the end of the month or year, you take the money to a bank for deposit.
Rewards Credit Cards
If you have fair to excellent credit, a cash rewards card is an excellent way to earn extra money without any extra effort at all on your part. Simply charge your everyday expenses like gas, groceries and bills to the rewards card, and pay it off weekly, bi-weekly or monthly. Most cash rewards cards offer rebates of a percentage or two, per transaction, without any catch or blackout period. If you can, look for a card with no exclusions, caps or limitations on earnings and one without an annual fee to maximize your earnings. This is an easy way to pocket an extra fifty to hundreds of dollars or more with no change to your spending.
Windfalls and Bonuses
Another great way to boost your savings without cutting back is to immediately deposit any rebate checks, refunds, found money or windfalls into your account. If you get a bonus at work or a pay raise, you also immediately transfer the difference between your last paycheck total and the new higher amount to your account.
Daily coffee runs, lunches out with friends, birthday parties and impulsive shopping splurges can quickly chip away at any extra money, leaving you with an empty wallet by month’s end. While most people have the best of intentions when it comes to saving money, few actually make the sacrifices necessary to start reaping the benefits of compound interest. Applying simple brain-tricking methods makes it easy and effortless to secure your financial future.
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