You have two significant advantages of having money in the bank. First of all, it is okay because you can see your progress in achieving your goals, but also for your finances: it absorbs shocks and surprises without getting into debt (sometimes it is toxic). But how can the balance of your account evolve to the point of having an increase in your bank account returns?
We all know the appropriate formula to apply which is to save more and spend less. Usually, this knowledge is not enough, but the following suggestions can help you pull through. Before starting with tactics, it is advisable to think about your goals – the things you want and why you want them; this will make the process more bearable and increase the chances of success.
One of the several essential steps to take is to prioritize savings. You probably know precisely how much you spend each month at home on rent or mortgage payments, or you are on the street. Can you say as much about the money you invest in your financial security?
The best advice is "getting paid first," which means you make sure you save money. When it becomes a priority, especially if it is a game in your budget or an automatic process that you can forget, it can become a reality. Having the desire to save more is sometimes not enough motivation for most people. How can you start doing this today?
If you are in a sinking ship, you must quickly solve the problem by trying to patch the holes. The fastest solution for most people is to reduce costs. It's also the most painful (and maybe not the most effective), but it's a must if you want to increase your savings.
Track your expenses, whether you're using a pen and notebook, an application, or budgeting software. Do not spend too much time and energy choosing the best "system" to control your expenses; it's a distraction.
If you have difficulty tracking your purchases, you spend electronically to have your bank record each transaction. Pay your bills online, use a debit card (or, better, a credit card that you pay every month) and limit your expenses in cash. The numbers do not lie. See where the money is and see if you get what you pay for. There are many ways to reduce costs.
By reducing costs, you can save more money. But you'll presumably get better returns if you increase your income (if you're not one of those six-digit people who are still in debt).
Unfortunately, it needs time to earn more and increase your bank account returns, and it's not as easy as canceling the cable TV service. In some cases, it is needed to change jobs, if you have been working for the same employer for many years and the growth has been slow.
A quick way to make more money is to add part-time jobs. It also means you have less time available for other tasks and it is exhausting to keep them for decades. But if you only need a boost, another job of a few months or more can get you back (and your main job will support you later, as well as your family).
If you need more substantial changes, start your business: you will have more control over your destiny and potentially more growth.
Another proven approach is to develop your skills and your "employability" to earn more over time. This may require more training and education, as well as a program that emphasizes value for employers. Over the years, your efforts must be successful.
Once you have been able to increase your bank account returns successfully, start making more money on the amount saved. Make sure you get a competitive rate with your savings, you probably will not have to change them every month to get the highest standard in the country and use CDs and financial market accounts to earn more.
