Automate the process of paying yourself
When you have to manually go about doing something, you can potentially put it off or not to do it from time to time. That is why you ought to automate the process of paying yourself first, doing it in a way that it doesn’t require you to give it a second thought, making it happen on its own. You can accomplish this in several different ways, including having your employer deduct the amount, putting it within your RRSP, or setting up an automatic transfer with your bank at your local branch or online.
When you use this method, you will find it easy to adjust your lifestyle to live on a bit less, not missing the money you are saving, being better prepared for emergencies. You will pretty much forget about your automated savings, while they keep growing, even as you are living your life as usual. Consider that saving as little as $20 a week grows into an annual saving of $1040.
Think of how much you could accumulate over a lifetime.
Spending plans or budgeting
Creating a budget or a spending plan is one of the smartest ways that you can go about to increase your savings. In a budget, you will need to know your income and your expenses. Once you have a firm grasp over these two items, you can explore ways of either reducing your expenses or increasing your income, allocating an affordable amount of money to your savings.
This is the method employed by the largest corporations in the world and by many successful business people as well. It takes a bit of work, particularly in the initial stages, and requires checking up every year or so, but it spells success.
This method is an open secret, and its key ingredient is identifying where your money is spent, enabling you to plan and exercise some control over your spending. When you make your budget, you will be surprised to see how much money you end up spending unnecessarily. This will allow you to identify these unnecessary expenses and eliminate them completely.
It allows you to channel some of your spendings into your savings, devising plans to fill up the savings account. Some people don’t do this simply because it requires some work. However, remember that success doesn’t come easy; if it did, everyone would be successful. Don’t shy away from hard work; it will pay off exponentially in the long run.
Use multiple savings accounts
If you can find a credit union or a bank offering free savings accounts, you may want to consider opening up numerous savings accounts, one for each specific item that you’re saving for. This allows you to keep money safe from being accidentally spent.