5 Effective Ways to Increase Your Savings.
If you live in the USA, NoireTV now showing nationwide on Verizon Fios on channel 269. Press 269 on your remote control.
NoireTV also showing on Optimum Cablevision channel 1100. Press 1100 on your remote control.
Follow us on Instagram @noiretvafrica and on Facebook ... www.facebook.com/caspennoiretv
Who doesn’t want a bigger savings account? With more money
in the bank, you can take more holidays, pay off debt, make home improvements
and even purchase a house. Unfortunately, saving money is easier said than
done.
According to www.life.com, many people have good intentions,
but when it comes to actually saving, they drop the ball. It’s not entirely
their fault. Nothing in this world is designed to make saving money simple.
There’s the higher cost of housing, food and fuel. And because employment
raises can be few and far between, most people earn just enough to cover their
living expenses.
- Increase your retirement contributions
Stop dragging your feet with regards to retirement planning.
Even if you’re in your early 20s or 30s, it’s never too early to think about
retirement. If your employer offers an RSA plan, and you are already
participating in the plan, review your finances to see if you can increase your
contributions. The money in your RSA isn’t liquid like your bank savings
account. However, if you lose your job or stumble upon other financial
hardship, you can tap into this fund and cover expenses.
- Open a Certificate of Deposit
Some people frown upon certificate of deposits because cash
in these accounts is unavailable for a certain number of months or years. But
if you’re serious about saving, a certificate of deposit can take your savings
to the next level. This is one of the safest investment strategies, and by
opening a CD, you’re essentially investing your cash with the bank. But there’s
a catch. Unlike money market and personal savings accounts, you cannot visit an
ATM and withdraw cash from a CD at will.
Funds in this account are tied up for the duration of the
term, which can be six months to five years. A certificate of deposit can work
if you’re bad with saving your money. These accounts force you to leave your
cash in the bank, which isn’t exactly a bad thing. The longer you keep your
money in the CD, the higher your return.
- Contribute to an Individual Retirement Account
Individual Retirement Account is becoming popular in Nigeria
and some insurance firms and banks continue to introduce the product. So, don’t
rely on your employee pension plan to get through retirement. The RSA will
provide income during your retirement years, but it may not be enough. Be smart
and take advantage of other retirement options, such as an IRA.
An IRA isn’t a specific investment account, but rather a
portfolio of different investments. You can open an IRA with your bank, a
financial advisor or a brokerage firm. And with an account, you can choose to
invest in bank CDs, mutual funds, stocks, bonds, money market accounts, etc.
IRAs grow your personal net worth and help contribute to a better retirement.
- Bank savings options
Banks know the value of a personal savings and many
financial institutions make it easy for account holders to build their nest
egg. Not only can you open one of many different types of savings accounts,
some banks give the option of automatic savings. The specific features of this
programme vary depending on the bank, but they’re all designed to increase your
savings faster and effortlessly.
For example, for each debit card transaction, some banks
will automatically deduct and transfer N1,000 from an account holder’s current
account to his savings account. And with roundup programmes, some banks roundup
every debit card transaction to the nearest N1,000 and then deposit the
difference into the accountholder’s savings account.
- Take 10% off the top
Nobody ever said saving money was easy, and if you’re ready
to build a liquid financial cushion, make every effort to pay yourself first.
Sure, it’s a hard concept to grasp, especially if you’re living
paycheque-to-paycheque. But if your landlord increases your rent, or if your
employer has to deduct more from your cheque for health insurance, you will
probably find a way to live without the extra money.
Not to say that your finances wouldn’t feel the pinch, but
you’ll eventually adjust. This is how you have to approach saving your money.
There are a million things you can do with 10 per cent of your income – go
shopping, hang out with your friends, order the best cable package and hire
someone to help around your house. But these choices don’t have long-term
benefits. The more cash you put aside, the easier it is to survive a financial
crisis. And maybe 10 per cent is a stretch – can you put aside five per cent of
your income? It’s not so much about the percentage, it’s all about consistency
and prioritizing.
-Oyetunji Abioye
Comments
Post a Comment