5 Practical Steps to Grow Your Savings
Posted on August 19, 2022 at 1:01 PM by Brian Godwin
We've previously covered the importance of creating an emergency fund. Having money set aside for an unexpected expense can be a lifesaver, but saving the funds can be hard. In this blog post, we provide you with 5 practical steps you can take to grow your savings.
1. Pack a lunch
It can be tempting to grab lunch on the go each day. It may be nice to get out of the office for a bit or to feel like you’re treating yourself, but the average cost of a purchased meal for lunch is $11.14. Meanwhile, the average expense for a packed lunch is $6.30. By packing a lunch each day, you could save nearly $25 between Monday and Friday.
2. Avoid the coffee shop
While you’re packing your lunch, you can also make yourself some coffee. The average cost of a cup of coffee at home is $0.42, compared to $2.95 at a specialty coffee shop. And, if you like a fancier coffee-based drink, you could be looking at $4 – 5 each. Making your morning coffee at home could save you nearly $13 during a 5-day work week.
3. Cancel unneeded subscriptions
Remember last winter when you were inside a lot of the time, streaming movies? Then summer came, and you quit watching them because you were almost always outside. Well, if you didn’t unsubscribe to the service, you may have been paying fees for little to no benefit. By remaining aware of your various subscription services, you can eliminate the unneeded ones to save. And, you can always re-subscribe in the fall.
4. Take a staycation
The average cost of a roundtrip flight within the US is currently $330. An international flight is running around $810. Multiply this cost by the number of people you’re traveling with, add the average cost of a hotel room at $91 per night, and a vacation can be quite pricy. Alternatively, trying new experiences in your local or regional area can be a lot of fun, without breaking the bank. Check with your local visitor’s bureau or do a little research online to find some fun new ideas.
5. Arrange an automatic transfer
You can set up an automatic transfer at your credit union to occur on any schedule and in any dollar amount that works best for you. If you move these funds automatically and in an amount that you’re comfortable with, you will hardly notice the difference – until you look at your increasing savings. To help it grow faster, bump the amount of the transfer every time you get a raise in pay. You’ll still have more in each check, so you won’t feel the pinch, and your balance will increase at an even faster pace.
As always, if there is anything we can do at River Valley Credit Union to help you, just let us know. As a member-owned financial cooperative, everything we do is for you, our members. Not a member yet? We would love to have you join us!
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Categories: Saving and Budgeting