To prepare for the future, you must have money saved, ensuring that funds are available to handle unexpected financial issues. It can be difficult to avoid the temptation to spend with the many products and services vying for our hard-earned money, but there are a number of tactics that can be used to reduce your spending, allowing you to save more money for other needs. Here are some great ways to save more money for your savings account.
Saving A Denomination
One of the more creative savings tactics available is denomination saving. Whenever you receive a certain denomination of money, such as a $5 bill, save it instead of spending it. This works better if you routinely use cash for your purchases and allows you to save a large amount of money quickly. Once your savings amount reaches a certain amount, you can place the money into your savings account for a quick balance boost.
Pad Your Bank Account
Padding your bank account with unaccounted for money is one of the easiest ways to avoid spending the money that you are supposed to be saving. Using this tactic allows you to save money while providing a cushion against accidental overdrafts. There are several ways that this can be accomplished. You can make a deposit into the account you do not list in the account ledger, effectively hiding the money from sight. Or you can enter a withdrawal into your account ledger without taking any money from the account.
Another creative way to increase your savings is to tax yourself when you perform certain actions. For example, charge yourself a $5 personal tax every time you purchase a luxury items, such as new clothing, a restaurant dinner, or movie tickets. The money put aside should go towards increasing your savings. Using this tactic reduces your spending and ensures that money is put into your savings account regularly.