Posted by John Pournaras Agency

Its 2020! Strategies To Achieve Savings Goals Faster

Its 2020! Strategies To Achieve Savings Goals Faster

Saving money for an expensive item, like a house, a new car, or that dream vacation, can go on forever. Many of the savings tips available seem to advise you to cut back on spending and live an under-valued life until you reach your goal.

However, you will be surprised how much money you can save by making a few small changes in your life. By reorganizing the way you spend your money, it is possible to save more without going to extremes.

It's not always easy to know where to start, so I've found some of the best savings tips that can help you increase your savings.

Use these ten essential steps to help you be smart with your money.

Take the first step

The first step to being smart about saving your money and reaching your goals faster is to understand better how you feel. Understanding the values of your life, internal, social, physical, and financial factors that influence your financial decisions and can help you clarify your goals and priorities.

Have you ever wondered why spending money on vacation is fun but not saving in retirement? Or why buy new watches but drag your feet when it comes to giving your kids an allowance? The answer may lie in your unique life values and how they influence your financial decision making.

Many of us fail to realize what lies behind the thousands of financial decisions we make each year. And if we are in a relationship, we know even less why our partners make the decisions they make. Completing a questionnaire on a financial lifestyle with your partner or spouse will allow you to understand the motivations and financial priorities of others better.

When filling out the questionnaire, quickly choose an answer for each question. Be honest with yourself and remember that there is no "wrong" answer, just your personal preferences.

Create a dream Board

You can be motivated when you set your expansion goal, but your motivation and will can be easily faded. One way to stay on track is to create a dream board or a visual reminder of what you intend to achieve. Dream boards can be as simple as cork boards, full of photos and clips that illustrate your goal. (For example, the dashboard can be a collage of pictures of the destination for your dream holiday,) Place the game board in a prominent position, on the desk or near the bed, and update it frequently to avoid becoming immune to your plans. Regularly viewing your goal can have a profound impact on your chances of success.

Reduce your interest rates

Do you know how much you are paying for your current credit card balances? Plus, most people don't pay much attention to the interest they pay for the car loan.

By reducing the interest rates paid on unpaid debts, you can quickly reduce your monthly payments. Ask your bank if they will negotiate a better deal with outstanding debt. You can also consider a debt consolidation loan that can significantly reduce the amount you pay for monthly payments.

Talk about restructuring your finances with a good mortgage broker and see if you can find banking products with lower interest rates and better terms.

You can save the money to pay off your debt balances faster. Once these debts are exhausted, you can deposit the amount you paid into your savings account to help you reach your savings goals more quickly.

Take the time to manage your money

Organization is an essential step towards a financially appropriate lifestyle. This requires the management of financial documents and time. Consider financial planning as part of your routine. Just like you set aside a time to go to the supermarket or the lobby, plan your time to maintain a healthy financial life by saving and creating strategies to reach your saving goals faster. Take the time each week to think, talk, and learn about money management. Spend 30 to 60 minutes a week on financial planning and discuss with your spouse/partner how to plan together.

Organize your financial documents

You need to know or get detailed information about your financial situation to become a trustworthy financial manager. Collecting and organizing this information in an archiving system that works for you will facilitate future financial decisions.

Some of the documents you should keep in an easily accessible fireproof box in your home and secure cloud storage include:

  • Bank statements
  • Credit card information
  • investment information
  • insurance policies
  • tax returns
  • Wills (you can choose to hire your lawyer)

Some critical financial documents should not be kept at home, but in a safe at a bank or credit institution. This includes:

  • Birth certificates
  • Death certificates
  • Marriage license
  • Divorce documents
  • Military discharge documents
  • Copies of wills

Autopilot Saving

One of the easiest ways to reach your savings goals faster is to put your savings on autopilot. Please provide a specific amount to debit from your payment or your bank account and automatically deposit it into your savings account. Then stretch the remaining funds as much as possible until you get the next paid.

By automating your saving culture, you can increase your savings account faster. This will also help you find ways to allocate and extend the remaining money until the next payday, which reduces the temptation to spend unnecessarily.

Check your banking 

We all have bank accounts, but if yours isn't right for you or your goals, or if you're misusing it, it can cost you more than it should.

  • Transaction accounts: Take a few minutes to check your bank statements every month. Your statements may seem tedious, but they can highlight the amount you pay in monthly fees. Checking your bank statement can also indicate if there are unauthorized transactions in your account that could have been lost.
  • Banks charge monthly fees for their accounts, while others may charge fees for certain types of transactions. For example, you can pay taxes to withdraw money from an ATM at another bank or to make branch transactions without a prescription.

Check your account balance regularly, especially if you have direct debits. By monitoring your balances, you reduce the risk of overcharging.

You can avoid or limit any transaction that could cost money or change your bank account to avoid paying monthly fees.

  • Savings accounts: It is common for people who intend to save money to look for a savings account that pays a high-interest rate on their money. However, it is also essential to choose the right type of savings account that meets your needs.
  • For example, a fixed-term deposit account may offer a competitive interest rate, but your money is frozen until the term expires. Some banks also pay interest on the bonus if you deposit a certain amount of money each month, but you will not receive the bonus if you withdraw money from your account.
  • An online savings account can also provide more interest, but may not provide access to your money when you need it.
  • With different banks and financial institutions and find out how each type of bank account works. Then choose the one that best fits your savings goals.
  • Credit card accounts: Do not give up the temptation to withdraw money from your credit card, as you may be charged a fee in advance. You may also be charged interest in cash, which may be higher than the interest rate on your credit card.

Baseline

If you're saving for yourself or want to spend money on someone else, try the strategies above when considering a specific financial goal. Being focused and making short-term sacrifices are the best ways to reach your goals faster.


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