A disciplined and consistent savings habit goes a long way in helping build long-term financial security. But building up savings is often difficult, especially when you’re faced with high inflation and rising costs of living. However, there is still hope. You can still save more from what you make by implementing the 6 tips outlined in this article.

• Budget your expenses to track spends and eliminate unnecessary ones.
• Try generating passive income to boost your savings potential.
• Shop wiser by leveraging coupons and discounts.
• Switch to high-yield accounts and automate savings and investments.

Implement the following tips to save more from what you make:
 

Change bank accounts

An easy way to save more from what you make is to simply make your money work. To manage your savings wisely, you can switch from a regular savings account to a high-yield savings account. While savings account rates vary, most range from 2.5%-3%. High-yield accounts offer 6%-7% interest rates that help your savings grow at a faster rate.
 

Monitor expenses and automate savings

Tracking your spending is the first step towards saving more from what you make. No matter how small the expense, diligently record it. Depending on your preference, you can use new-age budgeting apps, excel sheets, or the good-old pen-paper method to list and monitor your expenses. Remember to simultaneously automate your savings as well. Adopt the ‘pay yourself first’ strategy to ensure consistent savings.
 

Strategically reduce spending

Budgeting your income and expenses is a great way to save more from what you make. The simple act of budgeting will help you locate unnecessary spends and cut back on spending systematically. If you face difficulty beginning, use the simple 50-30-20 rule. Allocate 50% of your income to essential expenses like rent and bills, 30% to discretionary expenses like entertainment, and the remaining 20% to savings. Evaluating your spending habits will reveal expenses that can be avoided. For instance, you can cut back on buying daily lattes and switch to making coffee at home. Similarly, instead of dining out and ordering in, you can cook at home to eat healthier and save more. The amount you save by cutting these costs can be added to build your savings kitty.
 

Try generating passive income

A good way to save more from what you make is simply to make more. A second job or a small gig can boost your income. If you have hobbies like photography, singing, or painting, try monetising them to generate extra income. Similarly, if you own a home, you can rent out a part or the whole of it on platforms like Airbnb. Consider adding one or multiple such passive income streams to effectively save more.

Optimise utilities and ensure efficient debt management

Some expenses, like utility bills, cannot be drastically eliminated from your budget. However, you can work towards reducing them. Unplugging unused electronic gadgets, switching to LED lights, and turning off the AC when the weather is manageable are also easy ways to save more from what you make. Plus, they also help protect the environment. Other than that, efficient debt management goes a long way. If you have outstanding loans and a good credit score, consider refinancing loans to get lower interest rates. Cut back on high-interest debt like credit cards to avoid spending a fortune on interest payments.
 

Shop wiser

Adopting a wiser shopping approach may seem trivial, but it goes a long way. Plan your shopping trips with a set list to avoid impulsive spending. Leverage coupons, cashback rewards, and discounts to lower your actual cash outflow. Select store-brand items whenever possible to cash in on extra savings. For non-essential items, adopt the 30-day rule of delayed gratification. Simply sleep on it for a month and see if you still want to purchase the item.

There are numerous ways to save more from what you make, but only if you can remain diligent and committed to a leaner approach. Budgeting, monitoring expenses, automating savings, saving in high-yield accounts, generating passive income, shopping wiser, and better debt management can go a long way in helping you maximise your savings potential. However, you should remember that higher savings mean nothing unless these funds are invested wisely.
 

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