Top 3 Saving Techniques

Saving money is one of the most important and useful things you can do. Sometimes things occur which are unexpected and cost you money. That is just one of the many examples where saving up is helpful. Although, saving money can be difficult, it doesn’t come easy to everyone. Some people don’t believe that they earn enough money to save, some always dip into their savings and some people just don’t even know where to begin. So, hopefully our top 3 saving techniques can help you on your savings journey.

Technique 1 – 50/30/20 Rule

The 50/30/20 rule is a very common rule which people feel is something they can easily follow. This rule has become more and more popular in recent times as more people are learning about the value of saving. The rule was coined by Elizabeth Warren, a bankruptcy expert. The technique states that 50% of your income should be spent on things which are essential. This is things like bills and food. Following this, 30% of your income is to be spent on what ever you like. So the non-essentials which you love getting. For example, a gym membership, a weekly meal, seeing friends etc. Therefore, after this you should have 20% remaining to be saved or put away. This way you will be able to build up a good amount of money to fall back on if necessary.

Technique 2 – Savings Accounts

Hence the name, saving accounts are designed so you can put money in them and watch the money build up. They can separate your normal account and create another, meaning your two accounts don’t mix and you know exactly how much you are saving. You can also earn interest with different savings accounts therefore in the end you will have more money than you even put in.

Technique 3 – Saving Using A Jar

When you think of the jar technique, you might think to back when you were a child and you were saving up the pennies you were given. But, in reality, saving up a jar is a great way to get some money together. The best tactic is to find a jar which you cannot open unless you smash it. This is so you are not able to open it and take money out whenever you like. You might think that saving some coins isn’t going to get you anywhere, but it depends how long you save for and which coins you save. The most common coins which people save tend to be £2 coins. This is because you can easily build up a good amount with these. Once you have completed your fixed time of saving you can then open your jar and see how much money you have saved up.

Alternative to saving techniques

Sometimes, we don’t have enough time to save up money, so we turn to a loan. Simple Personal Loans offers personal loans to suit every occasion whether it be a new holiday or even debt consolidation. To find out more click here.

Previous Post: Signs you’re entering credit card debt.