Now more so than ever, having some emergency funds in the bank is crucial. Economists recommend that every person have enough in savings to cover at least six months of living expenses at a minimum. While this might be easier said than done, especially if you already find your monthly paycheck to be pretty thinly stretched, it is well within the realm of possibility. While you may think that there are no more budget cuts you can make in your daily life, there are other ways to boost your savings pot quickly. Here are the top five things that you can start doing right this second.
1. Change Accounts
Granted, interest rates are generally at rock-bottom at the moment. However, that doesn't mean you can be making smarter use of your money by getting the best possible rates on your savings. If your savings are just sitting in a standard checking account, you're doing it wrong. Shop around for the highest possible interest rates at different banks, and you will likely be pleasantly surprised.
2. Restructure Your Debt
Servicing debts such as mortgages and car payments can be a major drain on your resources. However, you can reduce your monthly outgoings in this department by restructuring the debt and arranging more favorable repayment terms, such as lower interest rates and longer plans. If you're a homeowner, you can use services like Trussle for free access to a mortgage adviser for remortgaging information. They will be able to tell you exactly how to restructure your existing mortgage in a way that works for you and your savings account.
3. Sell, Sell, Sell
Thanks to sites such as DePop and Facebook Marketplace, it has never been easier to sell your unused property for a good price. Take a look around your home and see what isn't getting much use. Leave no stone unturned when looking for things to sell – clothes, stationery, electronics, decorations, appliances, and kitchenware are all on the table. Once you have gathered your unloved wares, write a killer ad, and sell them on to someone who actually wants them.
4. Immediately Deposit Savings
Much of the time, the biggest obstacle to saving is a reluctance to move money that you have saved to somewhere you can't spend it. Say you've managed to shave $20 a month off your electric bill. What are you doing with that saved money? You should be moving this $20 into a high-interest savings account every single month. As human beings, we are prone to temptation and indulgence. That's why you should be moving your saved money to a place where you can't even see it.
5. Try a Side Hustle
This tactic isn't for everyone, but it certainly has its merits. No matter your background or skillset, there is likely a way you can boost your monthly income with a side gig. You could become a part-time copywriter for online businesses. You could become a remote assistant to a busy executive. You could turn your passion into a hustle by selling paintings, clothes, music, and the rest to customers. The options are endless, so do some research to see if a side hustle is right for you.
With these simple savings boosting strategies, you'll be in the black in no time.