All of us wish to start saving up our hard earned cash but when we set out to do so, we are faced with a basic but difficult problem. We just cannot figure out how to do so and what expenses to cut down on. Here are a few strategies you could follow in order to increase your savings potential.
The Bucketing Strategy
The Bucketing Strategy is a really good way of saving up on the money. The idea is to set aside certain amounts of money of same or different divisions which you intend to spend at separate types. Each of these small saved parts are termed as buckets and they help you regulate the amount of cash that you spend in a certain cause so that you don’t spend needlessly the money you actually intend to spend on something you’ve been aiming for. It is crucial to divide and decide how much amount you wish to spend in a specific area and then either go for the age-old envelope system or multiple savings account into which you feed the amounts at fixed intervals of time. Here are a few examples of ways you could divide.
Keep a track of your spending pattern
It is extremely important to reflect and introspect on the way you have been spending and decide if that is necessarily the right way to go. Try doing this at regular intervals which may be about three to six months and note down what you feel and find your spending pattern. You will definitely get a wider clarity and deeper understanding of the arenas where your expenditure is needed and which need to be contained as soon as possible. Once you are done with the identification part, the immediate next step is to start the measures you wish to take for spending more efficiently into the areas which require money faster and then prioritize your needs accordingly.
Increase your savings fast
You may not wish to keep track of your bank account inline all the time, and the best way to increase your saving would be to start at the end. Once you do that, you find yourselves in a situation where you have to choose where you’re going to spend your money, cautiously. A really smart way would be to set up an automatic transfer which sees that you move some money at the beginning of the week to your savings account and doing this weekly instead of monthly lets you keep the amount as a very basic one. Once you start this process, noticing the spending pattern lessen is only a matter of time. You start asking yourself questions before you invest in something which ultimately help you in realizing which expenditure is necessary and which can be avoided for the moment.