8 Tips for Growing Your Money Without Compromising Your Daily Expenses

*Collaborative Post

When you get your pay, do you catch yourself thinking: “I’ll start saving when I have more money”? Indeed, sometimes growing your money while on a tight budget can feel like a tightrope walk. It’s so easy to focus so much on your daily expenses that you end up with minimal or no savings at all.

But the truth is, the best time to start saving is now. With a strategic approach, an account with a high interest savings bank like Maya Bank (which can help you earn up to 15% interest per annum), and a few smarter financial habits, it will be possible for you to grow your wealth without skimping on your daily expenses. Here are eight proven tips for starting your saving journey:

1) Set Clear Financial Goals for Yourself

First, take the time to ask yourself what your financial goals are. Do you intend to save for a down payment on a house or your own retirement? Or are you starting small, with a goal like a dream vacation? It will be easier to set money aside for yourself if you have clear and achievable objectives.

Once you clearly understand your goals, divide your long-term objectives into smaller, more manageable milestones. This will make them less daunting and motivate you to actually clear them. You can use tools like vision boards or financial planners to visualize your goals and keep you inspired. Also be sure to review your goals regularly so that you can track your progress and make necessary adjustments.

2) Create a Realistic Budget

You will also need a working budget to effectively allocate funds for your needs, wants, and savings. Here’s a simple formula you can use: “savings + essentials = wants.” That may make it easier to proactively set aside funds for savings while focusing on essential expenses like housing, food, and transportation. You should also make sure that your wants are secondary to your needs.

Use budgeting apps or spreadsheets to monitor your expenses vis-à-vis your budget. This will help you identify areas where you can afford to cut back or adjust. Unexpected expenses may arise at any time, so your budget needs to be flexible as well.

3) Make It Automatic to Set Aside Your Savings

Automating your savings remains one of the best ways to grow your money in the digital age. If you can, find a way to set up quick or automatic transfers from your main account to a high interest savings bank account each payday. This way, you know you’ll regularly get competitive interest rates and be able to save money without thinking about it.

Even if you can’t easily automate your savings into different accounts per se, there are other ways to make setting aside part of your savings like second nature. Set up reminders to put your money into channels like Maya’s Personal Goals or a Maya Time Deposit Plus account, where the funds will roll over from month to month and earn higher interest depending on the terms or period you choose.

4) Take Advantage of Company-Sponsored Perks

Be sure to sign up for any benefit programs within your company that will help your finances. These could include retirement plans, stock ownership plans, free gym memberships, employee discounts, and savings plans with duly registered credit cooperatives, among others.

5) Reduce Your Unnecessary Expenses

You may not know it just yet, but small savings add up over time. Take a close look at your spending habits and identify areas where you can cut back or allocate costs elsewhere. For example, do you dine out very often? Why not prepare meals at home? Doing so may prove more affordable and healthier than eating out.

Other spending habits you can adjust so that you can save money include canceling unused subscriptions, actively using coupons and reward points from your banking program, and finding cheaper alternatives for everyday items or entertainment.

6) Diversify Your Current Income Streams

If you want to save a significant amount, don’t limit yourself to your primary income source. Explore opportunities to generate additional income, such as offering freelance services on job boards or starting a side hustle. Turn your hobbies into a small business by selling what you make or offering your services to people who need them.

7) Top Up Your Emergency Fund

Don’t forget that you should also be able to rely on a portion of your wealth for emergencies. Build up an emergency fund that you can use as a safety net for unexpected expenses, like medical bills, car repairs, or a loss of income. Aim to maintain at least three to six months’ living expenses in a high interest savings bank account. This fund can help you avoid debt and pay off daily expenses during tough times.

8) Pay Off High-Interest Debt

High-interest debt will drain your finances and hinder your progress towards your financial goals. Be sure to allocate enough funds in your budget for debt payment so that you can pay it off as quickly as possible. Consider consolidating your debts or using other methods to help you pay them off faster.

Small steps can lead to significant results, especially when it comes to your savings. Strategies like the ones listed above should help control your finances, direct laser focus towards your financial goals, and enjoy a more secure financial future without necessarily compromising on the expenses you have to pay off today.

*This is a collaborative post. For further information please refer to my disclosure page.