Saving Subtly: Tips for Building Savings Effortlessly
When people think about saving for a home purchase, their focus usually centers around setting aside a portion of their pay packet each week.
However, there are easy ways to stash money away without even realising you’re doing it.
And although the savings might seem inconsequential at first, over time they add up to thousands. You could use that money towards building up your house deposit or paying down your home loan faster.
Check Your Bank Statements This could also be known as: How to Spend Money Without Realizing It”.
Have you ever discovered charges from subscriptions, apps and other recurring items you forgot were on your bill? Have they come as a shock when your bank statement shows those fees?
According to Jason Robinson of RBK Advisory Group, just taking two minutes per week and month to cancel payments can save hundreds each year if done strategically.
“Recently I discovered iTunes was billing me $10 monthly for a Techwise subscription that I signed up for two years prior, amounting to approximately $240 paid out without even reading one magazine,” Robinson says.
Are You Thinking About Purchasing?: Calculate Your Borrowing Power Now
Use tech to round up purchases
Some banks are now providing you with innovative technologies to help you set aside small amounts as part of everyday purchases.
If you buy something with your bank or debit card, some banks now allow you to round it off to the nearest dollar (or whatever parameters you set) and deposit that extra amount directly into your savings account.
“When purchasing your $4.20 coffee, set the cash register to round-up to the nearest dollar; any extra funds (such as 80 cents or whatever it might be ) go directly into your savings account,” according to Robinson.
“That is certainly an innovative and cutting-edge way of moving money around without even realizing it!
Renegotiating Your Bills and Insurance Every time you use electricity or heat in the form of heating or air conditioning or hop into your car, the cost to do so adds up quickly. By restructuring your bills and insurance accordingly, you could make significant savings over time.
