How to grow your Savings Account in one year?

Written By Yojana Torres

We live in a world where everything is fast-paced, where the money comes and goes every second. It’s here one moment and gone the next, & if it’s hard for you to manage money then I believe this article will help you in the long run. Understanding why knowing how to save and what to invest in to give you and your family a better future, Is crucial. We all have to gain some self-control and discipline if we want to live a more stable life.

Here we will talk about ways you can grow your money and different ways you can do so…

Learn first the differences between Saving and Investing

When you save you are taking out money from your savings when you need it for after some time. It gives you a sense of security in case there’s an emergency of some sort. When you invest you have better long-term gains & passive income. There are risks in investing for a larger return, but your potential loss can be large as well.

Having a savings account comes in handy when you have to pay debts, loans, credit cards, purchases, & much more. It motivates you to want to save more at times when you are aiming to reach a goal, which helps provide a sense of financial freedom, including a dramatic decrease in financial stress.

So, if you don’t have a bank account I recommend you open one! If you are still a student 18 years of age or older you can get a discount or a free account when you bring your School ID.

Did you know that only 47% of Americans use budgeting methods to keep close of their spending... Yep, that's wild!

These are the four different easy methods you can choose from to grow your savings account

  1. Paying yourself first method: means that you are simply focusing on putting aside money when you get paid for yourself, and your high-interest debts. You're also increasing your emergency funds. This budget is best for anyone who struggles with saving each month because it helps you become more direct with your payments. You’ll feel less tempted wasting money when trying this method

  2. The sample zero-based budget is a simple way of budgeting. Here you are subtracting your income from your expenses until it equals zero. On one side of a sheet of paper, you write down all of your forms of income. (An approximate to how much you get paid each month). On the other side, you write down all the things you spend money on like insurance, bills, gas, food, clothing, etc, with an estimate of how much it will cost. Then you will start Subtracting and fixing every amount In the expenses until it all ends up to zero. Tip: when adding all the expenses after that it should equal your monthly income. EXAMPLE: Monthly Income $3000 - Monthly Expenses $3000= 0. This method is used if you have a set income each month, and it will help you regulate your spending giving you way more assurance.

3. Envelope System Budget: separate a certain amount of envelopes & write each expense on each one of your envelopes. Then you add the cash you have set for each envelope, seal it, and open it up when it’s time to pay. This Is a great technique to pay off debt with only cash. I recommend this to anyone who is a major credit card user too!

4. Lastly, the ‘no’ budget method consists entirely of not spending money that you don’t have. With this method you can:

  • Use your bank mobile app or webpage to keep track of your spending account.

  • Keep a spreadsheet, document (Microsoft Word), notes pad, or a sheet of paper.

  • Set aside money for debts & expenses.

  • Spend what’s leftover by keeping an eye on your account.

If it’s easy for you to just say ‘no’ to things you don’t even need or want when going out shopping, then this is a very easy method you can use.

There are many more ways to save but these are highly beneficial and will increase your savings account in less than a year. Sticking to one of these steps will give you the financial assurance you need in your day-to-day life. If you have chose your healthy budgeting plan and you are ready to learn more about Investing click Here.

I recommend this Awesome Budget Planner from Amazon starting at $21.99:

Yojana Torres