How to Increase Your Savings

In today's economy saving is the last thing on people's minds; getting by and paying the bills proves to be a tough enough task. But everyone should try and put a little away each month for a rainy day or perhaps a much needed holiday at the end of the year or even your retirement. There are many things you can save for and as soon as you make a list of these you will be doing your best to save up those extra pennies. I hear you saying easier said than done, but the good news is that for almost everyone there are many ways they can save a little, and as we all know a little does add up over the months.

One of the first things you should do is draw up a list of your total monthly outgoings, and then deduct this amount from your incoming monthly salary. This will give you an idea how much you can afford to save each month, and can also highlight the areas where you may be able to make extra savings. You can make savings from loose change, food shopping, cutting down on electricity and some small lifestyle modifications. If you currently save $300 a month why not try to aim for $400 in future. If you manage to save $400 a month then you can increase it to $500 and so on.

How about keeping a money jar in your kitchen and every time you go to the shop and come back with some loose change place it in this jar. At the end of the month remove the money from this jar and place it in a savings account. You will get some interest on your money, and don't get me wrong the way things are going it will not be very much but something is better than nothing. Speaking of shops, is there any way you could cut back on the price of your grocery bill? Perhaps you are buying too many tinned foods that are going out of date and need thrown out, or too many packets of ham. How about changing to a cheaper brand, you could save dollars by switching from a well known brand to the supermarket's own brand which will likely be as tasty. You could also buy in bulk and freeze some of the items. Why buy 2 of something each week costing $2 when you can buy 10 for $10, this way you save 50%. Sure it may only be a dollar or two but over a few items over a year time period it will add up.

Other ways to increase your savings are by cutting down on your luxury spending, ie things that are not essential. Such things are eating out, bottles of wine and other alcoholic drinks, chocolate, cakes and other excess foods. These foods should be enjoyed in moderation and once weekly not daily is ample. Cutting down on your electricity or energy use is another fantastic way to save the pounds. Always remember to switch off lights and sockets when they are not in use. Please do not put money on credit cards. Just think of the high interest you will have to pay back on them. If you really must use a credit card, as soon as you get your next salary clear the balance.

It is very possible to increase your saving power when you know how. By following these tips you should be able to save an extra $100 a month.