It is always a smart idea to have a healthy sum of money tucked away as you never know when you might need it. Whether this is for a rainy day, to fund a special trip, for home improvements or simply you need more money for day-to-day spending, it is important to put some money aside each month for this pot. There are also a few things that you can do to boost this pot if you ever need more money and some of these are a good practice for smarter spending too. Read on for a few tips to boost your savings:
First, you should make saving a priority, which will involve either making a budget or altering your current one. Many people use the 50/30/20 budget where 50% of income goes towards essential spending, 30% on unnecessary spending and 20% towards savings and debt clearance. This can be a good balance, but if you want to raise your savings quicker, you could switch to 30% savings or possibly even higher.
One of the most obvious things to do is to cut down on your spending and to set this spare money aside. People tend to form shopping habits, but often you could make significant savings by opting for a different brand, shopping at a different store or by purchasing second hand. Additionally, you can cut spending by cutting out unnecessary bills and by opting to walk/cycle instead of drive or take public transportation.
Sell Unnecessary Items
You can also raise a good amount of money by selling possessions which you no longer need. Auction sites like eBay have made this quick and easy, and you might be surprised at just how much you can raise and the range of possessions that you can sell.
If you are unable to take on another job (which is understandable), you could look to supplement your income another way. Babysitting, tutoring and dog sitting are a few options, but you could also supplement your income with a wide range of online jobs – this allows you to work at home and choose how much work you take on to work around your schedule.
Those that own a home and are retired may want to consider equity release which allows you access to some of the money tied up in your property. If you are unfamiliar with the processes involved, you can easily learn more about equity release with Sunlife. The equity is the difference between the market value and any outstanding mortgage or other debt and the rise in house prices means that this could be a fair sum. Fortunately, you are not restricted in terms of ways you could spend money released from your home, too.
These are the 5 best ways to raise your savings so that you are in a healthy financial situation. You may find that you need access to a large sum of money at any time and in these situations, it is best if you are able to fund this yourself through your own savings.
*This post is sponsored.