Steps to Double Your Savings Account in 2018
Whenever a new year begins, there is always a tendency to look at the past year and consider all of the ways that this year could be different. We picture ahead to the next new year, and imagine more of who we would like to be.
Perhaps we’re fitter, or in a better relationship, among other things. One thing almost everyone wishes for the new year, though, is that they were in a better financial situation, and had more money stashed away.
Well, if you’ve struggled with building up your savings in the past, there are very easy ways that you can buckle down and finally get a handle on your savings this year.
Assuming you don’t already have a bunch of money saved up, it’s entirely possible that you can double your savings in this next year with some simple steps…
Make your savings work
The number one mistakes that people make with their savings is that they treat it like a vault where their money is locked away, untouchable. This is great at keeping you from spending it on frivolous things, but the problem is that then that money is doing nothing!
Wealthy individuals don’t just shove their money into a bank account and let it rot, especially when interest rates are so low. As a matter of fact, doing this causes you to lose money, since the Federal government’s target rate of inflation is 3%, so that money will be worth 3% less, next year.
The money that you’ve earned should work for you, and earn more of itself. This is called investing, and it is so easy to get started in today’s world.
Even if you don’t want to get a broker to start your investment journey, you can download robo advisement apps that will automatically invest your money in a diversified portfolio, with minimal involvement on your end.
Get the most out of your taxes
Per the obligatory Ben Franklin quote, taxes are the only certain thing in life, besides death. Obviously, taxes pay an important in how our society functions, today, as they fund infrastructure and provide important services to the public.
However, due to the nature of the tax code, a significant part of the tax game is trying to pay less. That’s just the way the game works. Oftentimes, people can save thousands of dollars on their taxes, or get much larger returns, and they don’t even realize it.
If you’re not necessarily a whiz on the IRS tax code, though, it usually easily pays for itself to simply have a professional go over your taxes with you and help you file. This can give you a significant boost, in the early part of the year, towards increasing your savings account.
Breakdown your living expenses
In order to get a handle on your savings, you have to get a handle on your spending. To do this, you need to have an actual breakdown of what it takes for you to get from month to month.
Take a look over the past year, and consider how much you’ve had to spend on various bills, from rent, to car payments, to insurance, and any other expense that you need to pay each month.
Once you know what you’re spending, you start to see how you can cut down on those bills. If you can find a way to cut your rent down by even $50, then that means that you’ll have $600 more dollars to save at the end of the year.
Reduce transportation costs
Another cost that can be reduced to have a profound impact on your savings is your transportation costs. These types of costs tend to be less obvious than big expenses, such as rent or mortgage payments.
However, little expenses add up to enormous amounts, over the course of a year. Spending even $5 on public transportation, every day, can cost you nearly $2000, by the end of the year.
For this reason, see if there are ways you can consolidate your transportation costs. For public transit, check if there is a monthly pass that makes it cheaper. For your vehicle, find little ways that you can improve your gas mileage, or opt to carpool with a coworker into the office.
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Category: Family Finances
